Since November 8, when the US elected a new president, the dollar index, which measures the unit against six major currencies, has gained more than 3% till now.
Even Brexit & Trump’s win weren’t as calamitous for the markets as had been predicted but a weaker rupee could prompt foreign investors to flee markets.
There is buildup in interest in rural-focused companies ahead of the budget: Deepak Jasani, HDFC Sec
Among largecaps, we like Lupin, Bank of Baroda, ICICI Bank, Kotak Bank, Tata Motors and Bajaj Auto. Small/ midcaps picks include V-Guard, Century Textiles.
Cautious sentiment in the market, coupled with talk of pricing pressure on pharma, and new H1B norms for IT companies could affect these stocks, said analysts.
"Agility in the face of rapid changes in the landscape, as traditional moats are besieged, is needed for survival. PvBs are much ahead of PSBs in this respect too," the report said.
Though the logistics space has a larger number of unorganised players and the rolling out of the GST would reduce the time taken for delivery, Octroi and the overall cost of carrying the goods, the sector would stand to benefit only post a year of GST implementation, said analysts.
The company has announced three new projects across India and UAE, which will expand its capacity in the oil business, said analysts.
Post demonetisation, the loan growth and collections for both companies dipped in November, but saw a spike in non-cash transactions of up to 75%.
Except for Eicher’s Royal Enfield, Tata’s Tiago and few models of Maruti (Breeza, S-Cross & Baleno) which have long waiting periods, all the companies suffered the continuing short term liquidity crunch on account of demonetization.
"All the pessimism with respect to demonetisation, Trump on emerging markets – all the negatives have been broadly covered and discounted by the markets," said Modi.
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