Companies in sectors including cement, housing, software, healthcare, telecommunications and financials are among their top picks as business activity in India picks up pace after the world’s largest lockdown
As India prepares to celebrate its Diwali festival this weekend, stock brokers see growing signs of an economic recovery from the pandemic as reason to cheer and advise investors to buy cyclical stocks.
Companies in sectors including cement, housing, software, healthcare, telecommunications and financials are among their top picks as business activity in the nation picks up pace after the world’s largest lockdown. Diwali, the Hindu festival of lights, is considered auspicious for purchases of everything from automobiles to apartments, and even shares.
India’s factory output turned positive for the first time in seven months in September, official data showed Wednesday. And the benchmark S&P BSE Sensex climbed to a record this week as foreign purchases of local stocks surged.
“With economic activity recovering fast, more earnings upgrades cannot be ruled out," according to Motilal Oswal Financial Services Ltd. in a note. “Strong global markets can keep liquidity abundant in the system, providing support to the overall market."