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Showing posts from March, 2021

How Forward looking is the Market while Re-rating Infra and cyclicals

Economic Recovery  High Demand across sectors  +  Broad base improvement in profits through margin expansion ( cost cutting) and higher sales. + Govt Reforms of last 5 years + PLI scheme for manufacturing / Market share movement from China  +  High Capacity Utilisation. New capacity planning.  +  Bank flush with Liquidity.  +  Low Interest rates + Bad Bank announcement+ DFI  +  Credit Demand  +  New fast paced Credit Cycle  +  Double Digit credit Growth  +  Huge Investment in Capacity building and Govt and DFI funding long term Infra + Leading to a high Commodity demand.  Market is way ahead and predicting this Commodity demand in Re-rating the commodity  and Infra Cycle.