Focus should remain on alpha than beta: JP Morgan

Bharat Iyer, JP Morgan said the equity markets went into the event with limited expectations; consequently the disappointment was muted.

In terms of sector stance, he maintained the focus should remain on alpha, rather than beta. “We would position for a potential recovery in the local economy through high quality financials with a strong capital & liability franchise & manufacturing sectors with low financial leverage & high operating leverage - commercial vehicles & cement are key picks here,” he explained.

Separately he remained overweight IT services and healthcare, he said, adding the demand environment remains solid. He believes concerns on INR appreciation turning into a headwind are over done.

Meanwhile, Rohini Malkani, Citi said in line with expectations, the RBI left policy rates unchanged largely due to lack of transmission of past cuts in banks' lending rates and limited incremental data post the March rate cut.