Anxiety is up in global markets - the chart above shows the Policy Uncertainty Index, which indicates a spike in uncertainty across the world with Brexit. Analysts suggest that India however, looks better placed to weather the storm.
1) IT up for grabs: Nifty IT is at a three month low, driven by anxieties over Brexit. This is a good time to pick up IT heavyweights with good fundamentals.
2) Auto results: Auto stocks are likely to outperform expectations on the heels of a normal monsoon and also from government pay hikes announced this week. Stocks like Bajaj Auto have seen exports hit by struggling African demand, but still seeing bullish BUY recommendations.
3) Manufacturing: China's manufacturing index has hit a four month low, but India's manufacturing activity is at a three month high, driven by domestic demand. Thie optimism is likely to continue for India as international investors look the country as an option in the face of China's slump.
4) New accounting standards have kicked in for Indian firms in April, and will boost companies like L&T, hiking up the company's net worth estimates.
