- As per a market veteran, FPIs are waiting for better valuations and time correction before increasing allocations. H1FY27 faces pressures from West Asia, El Niño, weak rainfall, inflation and rates, while earnings estimates could face further cuts. Power transmission, data centres, AI, defence and pharma remain areas of interest. The next Fed meeting is scheduled for 27th-28th October 2026, with rate policy remaining an important trigger.
- Pharma stocks on radar: Sun Pharma, Cipla, Biocon, Zydus Life, Hester Bio and Shilpa Medicare could remain in focus following the reported US tariff exemption for certain speciality drugs and ingredients imported from India and 19 other countries.
- Anand Rathi Conference – Sector-wise Key Takeaways: AEROSPACE: Strong order backlogs support demand, with focus shifting to execution and NPD-led growth. Margins remain stable despite high capex, while working capital may stay elevated due to import dependence. • AUTO: Demand remains strong across segments, with festive/Q3 growth expected at high-to-double-digit levels despite a high base. The 8th Pay Commission could support demand, while commodity pressure may be offset by price hikes, mix and scale. • AUTO ANCILLARIES: Auto upcycle, premiumisation, EV/regulatory content, exports and diversification into aerospace, semiconductors, electronics and defence remain key growth drivers. Margins remain supported by scale, mix and pass-through. • BANKS/NBFCs: Loan and deposit growth expected to remain stable/improve. NIMs may face Q2 pressure from high-cost FCNR deposits but could improve in H2FY27. Asset quality remains broadly stable, while technology investments should aid efficiency. • CEMENT: Q2 demand remained firm at 7–8% YoY. September prices rose Rs.25–30/bag in South and Rs.10–12/bag elsewhere. Cost pressure persists from Middle East gypsum, petcoke above US$170/tonne and higher domestic coal prices. • CHEMICALS: Demand is improving unevenly, with energy, polymers, O&G, F&F, pharma and FMCG firm. Agro recovery remains selective, while textiles, CPVC, dyes and pigments stay weak. Capex cycles may end through FY27–28, with earnings uplift likely in FY29–30. • CONSUMER DURABLES: Q2 remains seasonally weak, with recovery expected from H2. FY27 outlook remains constructive on a low base and El Niño tailwinds, though commodity inflation and price competition may pressure margins. • FMCG/CONSUMER: Demand remains steady, with price hikes supporting revenue. Premiumisation and digital/e-commerce remain key growth drivers, while higher crude and commodity costs pressure margins. • INFRA: Disciplined bidding and execution remain key. BOT/HAM/PPP, asset-light models and international opportunities are emerging as incremental growth levers. • IT SERVICES: Near-term outlook remains pressured by AI-led revenue deflation, weak discretionary spending and Middle East geopolitics. AI adoption is increasing, but monetisation remains at an early stage. • REAL ESTATE: Redevelopment and geographic expansion are widening project pipelines. Better mix, pricing power and cash generation are supporting a shift toward profit-led growth.
- As per a market veteran, a meaningful fall in Brent crude could support Indian equities. Heavy equity supply through OFS, IPOs and block trades is also absorbing liquidity, while US AI-related investments are attracting global capital. Asset allocation remains important, with gold better viewed as part of diversification rather than a standalone buy.
- Huge negative for Indian equity and mutual-fund investors: Reduced fresh Fed purchases alongside heavy US Treasury issuance could keep US bond yields elevated, potentially attracting foreign capital away from India, pressuring the rupee and increasing equity volatility. Monitor US yields, the dollar and FPI flows, while maintaining diversification and avoiding excessive exposure to highly valued stocks.
- Arrogance of govt. & FM hitting markets as well as economy:(Source: Money Purse)
