Moneycontrol BureauBroking firm Macquarie feels an economic recovery is underway, based on its interactions with a number of construction equipment companies including JCB, India’s largest construction equipment company.“Most of the companies have seen marked improvement in volumes since late 2015 and the trend has sustained in 2016 to date,” the Macquarie note said.According to Macquarie, the growth momentum in the construction equipment segment has momentum has sustained despite withdrawal of discounts and price increases. “Another key indicator from our discussions with companies is that usage patterns of existing fleets have improved, evident from higher sparesales,” the note said, adding that purchases were being done primarily by first-time buyers. “Inventory levels at dealers across the industry have declined in the last 6 months. Anecdotal data from equipment financing players like SREI equipment finance and a pick-up in CV sales also concur with this inference,” the note said.Macquarie feels stocks like Larsen & Toubro, NCC and Cummins India are good bets to play the macro recovery theme.
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