Sectoral Equity Indices & Market Analysis
....Contd
Classification - Restricted
Pharma
Neutral to Positive - US generics market experiencing higher than expected price erosion due to inventory liquidation by large players, that seems to have been priced
in by the stocks.
Normalisation of production expected in next few months.
Domestic oriented business momentum continues to be strong. Domestic focused companies could generate Alpha.
Housing & Construction
Positive - Higher household savings have increased the affordability for Housing sector.
Focus on Infrastructure is clearly visible with government accelerating spending at the cost of fiscal deficit. Risk-reward is still highly favourable and medium-term
outlook remains positive.
Volatility in raw material cost could impact profitability.
Sector is coming out of long period of consolidation
Metals
Cautious- Due to High cyclicality and global risks.
Uncertainty over volatility in raw material cost, including thermal and coking coal and iron ore, leading to earnings volatility.
Possibility of demand slowdown due to widespread global inflation is a major concern for metals sector. Commodity cycle has largely played out - Prices likely to
correct further as global growth moderates
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