Low inflation impact - underweight on staples, overweight on mortgage providers: Credit Suisse

Neelkanth Mishra of Credit Suisse said the decline in headline inflation has been much faster than expected.

It supports overweight call on beneficiaries of lower interest rates like mortgage providers and metals, he added.

At the same time, low food inflation could hurt consumption, according to him. The research house stayed underweight on staples, Mishra said.

India's retail inflation cooled down to 1.54 percent in June from 2.18 percent in May, mainly due to goods and services tax-induced discounts.

Core inflation rate was at 3.8 percent versus 4.2 percent month on month and food inflation came in at -1.17 percent versus -1.05 percent MoM.