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India Equity Strategy Learn from history – get ready for a bull run

HSBC Global research writes

In a non-consensus call, our analysis of two decades of Indian equity cycles shows that investors should be prepared for the start of the next bull market
Sectors such as banks and some laggards – consumer discretionary, metals, energy and real estate – look well positioned
We also highlight 16 key stocks, based on our strategy sector preferences and company classification framework

My two cents

In my humble opinion all bull run in India coincide with higher inflation feeding into higher nominal GDP. Higher inflation reduces the value of debt and increases the value of fixed asset correcting the balance sheet recession through inflating away the debt. So either inflation rise sharply leading to pricing power with producers or currency falls sharply leading to cheaper and much competitive local assets for global investors. Take your pick

full report below

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