JP Morgan bullish on banks, auto and real estate stocks

Mumbai: With India’s Covid-19 case count increasing over the last ten days, a third wave cannot be ruled out, said JP Morgan in a note. The brokerage said a third wave may not affect markets much if fatality rates and lockdowns remain limited. In an expensive market, JP Morgan is bullish on banks, auto and real estate stocks.

The brokerage said daily case counts in India have increased from the lows of 32,000 to about 42,000 now, which is almost entirely driven by an increase in cases in Kerala. Yet, daily infections in major cities such as Mumbai, Surat, Nagpur and Varanasi have risen recently and the pace of decline in cases has slowed almost everywhere else, said JP Morgan.

“If fatality remains low (as it has in the UK), then local governments may not impose significant restrictions. Markets may then look through an increase in infections – hoping the third wave recedes like the first and second did,” said JP Morgan.

Loading...

MSCI India’s one-year forward price earnings is now 79% higher than MSCI EM.

JP Morgan said a third wave may hurt domestic-focused sectors but it is bullish on banks, auto and real estate sectors as potential reopening or monetary policy beneficiaries.

Overall, earnings surprise momentum for the market is likely to worsen on higher expectations and adverse base effects, said JP Morgan.

Loading...

Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest Education News Click Here 

Loading...

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! TechiLive.in is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Loading...