India in a mini-Goldilocks! India is in a mini-Goldilocks set-up, with solid macro (GDP, inflation, CAD, stable currency) and resilient micros (Corporate earnings). Moreover, the expectations of political continuity with an acceleration in policy momentum (as promised in the BJP manifesto) in the potential third term of the BJP under PM Modi augur well for markets for the short to medium term, in our view. The Nifty is trading well within its long-period average P/E of ~20x FY25E EPS. We continue to stay OW on domestic cyclicals, e.g., BFSI, Industrials, Real Estate and Consumer Discretionary, and maintain UW on IT with Equal Weight on Healthcare, Automobile, Metals, O&G and Telecom.
MOFSL Top Ideas:
Large caps: ICICI Bank, SBI, L&T, TITAN, ITC, HCL Tech, Coal India, M&M, Zomato, and Hindalco.
Mid-caps: Indian Hotels, Godrej Properties, Global Health, PNB Housing, KOEL, Cello World, Sobha, Lemon Tree Hotel, KEI Industries & JK Cement
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