This, according to Jayakumar, is a welcome development and a signal of the market finding a new equilibrium. He suggests that the 23,500-24,000 level has emerged as the new base for the Indian market, drawing a parallel to the previous support around 21,900-22,000.
In his words, “For the first time, macro issues are dominating micro investing and that is a good call. Large sections of the audience are worried, and you have foreign investors with allocations coming through for the first time. For many quarters I think it is a sign that we are where 21,900-22,000 got defended, maybe 23,500 to 24,000 has become the new 21,900-22,000.”
Regarding public sector undertakings (PSUs), Jayakumar observed that a persistent challenge, particularly in the defence sector, has been the execution of orders.
He clarified that an increased global threat of war doesn’t immediately translate into rapid changes. The processes of order placement and fulfillment take time. He noted that many PSUs already possessed healthy order backlogs, and defence spending was on an upward trend even prior to recent global events.
Consequently, Jayakumar suggested that the investment thesis for PSUs remains a bottom-up approach, emphasising the need to analyse individual companies rather than the entire sector. Additionally, he anticipates that the government will likely leverage the next 12 to 18 months to pursue stake sales in various PSUs to meet its divestment objectives.
Shares of IndusInd Bank Ltd. are expected to remain in the spotlight on Wednesday, April 30, following the resignation of CEO Sumanth Kathpalia amid concerns over derivative accounting discrepancies.
According to Jayakumar, the leadership change at the Mumbai-based private lender is a step in an ongoing resolution process rather than an isolated event. He views this development as a turning point that could bring greater clarity and potentially mark the beginning of a recovery phase for the bank.
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