India's industrials sector exports at risk, brokerage Nuvama says

ABB India

20/11/2023 08:17

** Order inflows in Q2FY24 for India's industrials grew 60%
YoY led by public capex in sectors like railways, defence
coupled with new-age segments, as private capex has yet to pick
up pace, says brokerage Nuvama Institutional Equities
    ** Adds, underlying demand looks robust, short-cycle
ordering momentum slowed due to de-stocking ahead of elections,
as distributors stay cautious
    ** Ongoing super-cycle is largely public capex driven but
exports are at clear risk given the global slowdown/recession
concerns - Nuvama
    ** "Supply-chain disruption due to geopolitical risks, input
cost volatility, India general elections, etc. may disrupt/delay
the ongoing ordering momentum, especially for short-cycle," adds
Nuvama 
    ** Top Picks for the brokerage are Bharat Heavy Electricals
 BHEL.NS , Siemens  SIEM.NS , Larsen & Toubro  LART.NS  and KEC
International  KECL.NS  


 (Reporting by Meenakshi Maidas in Bengaluru)
 ((meenakshi.maidas@thomsonreuters.com;))