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MOSL: Morning India (13/June/17): 1. Cummins India; 2. EcoScope (Macroeconomic data set the stage for a rate cut); 3. Metals Weekly

​MOrning India (13/June/17): 1. Cummins India; 2. EcoScope (Macroeconomic data set the stage for a rate cut); 3. Metals Weekly

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Today’s top research idea

• Cummins India: Infrastructure spending to drive domestic demand; Competitive intensity remains high
  
• KKC witnessed pick-up in domestic demand, driven by strong infrastructure spending by the government.
  
• Over medium term, KCC expects double-digit domestic sales growth, given strong infrastructure spending and pick-up in demand for backup power.
  
• Growth in domestic sales should be driven by: a) Industrial segment: Road construction, railways and mining provide strong opportunities, given government's focus on infrastructure development. Over medium term, KKC expects growth in industrial genset segment to come in better than that in power generation segment. b) Power generation: KKC expects growth here to be directly correlated to domestic GDP growth, driven by back-up power installations by end-consumers. Revival is seen in key end-markets of IT/ITES, hotels, hospitals and data centers. c) Distribution segment.
  

Piping hot news

May inflation at 5-year low, raises rate cut hopes

Consumer inflation fell to its lowest in at least five years in May because of softer food prices, raising hopes the Reserve Bank of India (RBI) may cut rates to boost the struggling industrial sector.