Indian Stock Picks from Macquarie and Barclays

At a time when retail investors in India are thinking about how to explore opportunities in equities, analysts at top global brokerage firms like Macquarie and Barclays are of the view that the recent correction in Indian markets owing to both global as well as domestic factors should be used to accumulate quality stocks.

According to the report, below are the recent major issues which caused a down trend in market

1) The macroeconomic recovery has yet to translate into stronger corporate earnings,
2) The industrial recovery has remained weak and the investment cycle recovery remains elusive despite GDP growth improvement;
3) Consumption growth has not been commensurate with sharply lower fuel prices
4) Recent tax issue with FII investors has dampened overall market sentiment.

Both these firms believe that there will be gradual recovery coming in. Barclays believe that consumer-related sectors would be the first to exhibit growth; hence, their preferred sectors are consumer discretionary private sector banks and the building materials industry. 

According to Macquarie, the impasse in Greece is a good opportunity to buy into the market as it consolidates before the next leg up. Government spending on infrastructure is finally starting to make some impact and whispers are back about a possible interest rate cut in August.

Below given are their recommendations for a time frame of 1 year
Image courtesy:et 

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2 comments:

  1. Sir, Whats your view on Gulshan Polyols after poor Q1? Is it still a value pick?

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    Replies
    1. Dear Veer, we cannot write down a company because of one bad quarter. Take a decision after this quarter result.

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