India's Infosys, IndusInd likely to gain most if Fed cuts rates - Emkay

Piramal Enterprises

15/12/2023 08:51

** India's No. 2 IT company Infosys  INFY.NS  and mid-size
private lender IndusInd Bank  INBK.NS  are likely to be among
the best beneficiaries of falling interest rates, brokerage
Emkay Research says 
    ** Adds banks with low floating rate loans like IndusInd
Bank and IT cos like Infosys with low near-term earnings risk
and reasonable valuations to benefit most from easing rate
outlook
    ** Earlier in the week, U.S. Federal Reserve Chair Jerome
Powell signalled lower borrowing costs in 2024, adding that the
central bank is not likely to raise interest rates further 
    ** Fed's "newly minted dovishness adds bullish leg to the
market", expect RBI to follow suit with rate cuts - note 
    ** Brokerage remains cautious on consumption theme except
autos
    ** Brokerage also retains Piramal Enterprises  PIRA.NS  and
Hero MotoCorp  HROM.NS  among its "top picks"   
    ** Also adds Zomato  ZOMT.NS  among potential gainers from
easing rate cycle, due to sustained business momentum; ZOMT
shares shed 0.7%       
    ** Infosys  INFY.NS  up ~4% on the day, among top Nifty 50
 .NSEI  gainers
    ** Hero MotoCorp  HROM.NS , IndusInd Bank  INBK.NS  up
between 0.5% and 0.1%, Piramal Enterprises  PIRA.NS  rises 3%
    

 (Reporting by Hritam Mukherjee in Bengaluru)
 ((Hritam.Mukherjee@thomsonreuters.com;))