Advantage AxisDirect
- 20 investment products
- 3 great platforms to invest
- 5 fun-tastic learn courses
- 5 powerful research segments
- 4 prestigious awards
- 9 lakh+ happy investors
Quotes
Back To Menu
-
Offerings
- Overview
- Products
- Platforms - RING
- DIGITAX
- Managed Accounts
- Private Client Group
- Business Associates
- NRI
- Insurance
- SGB
- Markets
- Research
- Learn
- PORTFOLIO
- PROFILE
7 Disruptive trends with sustainable ideas
Essence of the Week
Jun 13, 2016 | Source: AxisDirect
We recently released our strategy note that focuses on seven disruptive trends with sustainable ideas emerging from these but masked by the wild swings of global and local tides:
Agriculture incomes to rise: Doubling of farmer income
Auto: Emission norms, Change in stages of the cycle
Banking: New players, PSU consolidation, Digitization, Clean-up
Engineering (Railways, Defense) and Logistics: Major investments and indigenization
GST, Demographic macro, etc.
Power and equipment: Emission norms, Renewables
Telecom and Media: Data flood in telecom with disruption in Media
We also reviewed our Model Portfolio to incorporate the near-term view with overall macro backdrop (hardening crude, probable Fed hike, Brexit, stressed domestic B/S and upside risks to inflation). However, Micro seems to have troughed out. Q4 results show signs of earnings recovery. Earnings growth of BSE-500 companies (exFinancials and Resources) stood at ~9% YoY – a six quarter high! Sectors barring banks, infrastructure and retail have notched notable earnings growth. Moreover, there is some discernible improvement in select lead and urban consumption indicators (auto, fuels freight rates and cargo etc), and with hopes of a normal monsoon, the focus will remain on urban consumption. We believe recovery will continue to lag in rural consumption and private capex.
Our key portfolio stance – Rationale is provided alongside each stock wherever changes have been made in the portfolio
OW sectors: Auto, Cement, Engineering, Infra, Power, Telecom (partly due to ABNL classified under this sector)
UW sectors:Consumption (FMCG, Media, Retail), Resources
Nifty stocks:
> 5% wtg: ICICI Bank, HDFC, HDFC Bank, Infosys, RIL
OW by 2x Nifty wtg: UltraTech, BHEL, Tata Steel, GAIL, PGCIL, Tata Power, Eicher Motors
Non-Nifty stocks: Ashok Leyland, LIC Hsg, Thermax, ABB, Britannia, HPCL, Divi’s Lab, DLF, ABNL
Main changes from previous version (January 2016)
Auto: OW sector; added M&M and Hero MotoCorp, increased weight in Tata Motors, reduced Eicher Motors
BFSI: OW ICICI Bank, HDFC Bank and UW SBI. Removed Kotak Bank and Indusind Bank
Cement: OW sector and UltraTech
Engineering and Infrastructure: OW sector and BHEL (new addition). UW L&T and removed non-nifty JPA and BEL
Consumption (FMCG, Media, Retail): Massively UW sector
IT: OW Infosys and HCL Tech
Resources: OW Tata Steel (new addition)
Oil: Reduced exposure in RIL. Added GAIL and reduced non-Nifty HPCL
Pharma: OW Lupin (new addition), Cipla, Aurobindo
Power: OW sector and added NTPC
Telecom: OW sector – partly due to ABNL classified under this sector
Related Keyword
Stocks
Stock Market
Fed Reserve
Monsoon
Auto
Fed Reserve
RBI
Banks
Pharma sector
Similar Articles
Show more...Download app