Motilal Oswal - MOSL: Morning India (17/September/21): 1. EcoScope (Is India ready for capex-led recovery?); 2. Consumer Durables (Import substitution on track for RACs); 3. Financials (FM announces constitution of a ‘Bad Bank

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MOSL: Morning India (17/September/21): 1. EcoScope (Is India ready for capex-led recovery?); 2. Consumer Durables (Import substitution on track for RACs); 3. Financials (FM announces constitution of a ‘Bad Bank

MOrning India (17/September/21): 1. EcoScope (Is India ready for capex-led recovery?); 2. Consumer Durables (Import substitution on track for RACs); 3. Financials (FM announces constitution of a ‘Bad Bank’)

Today’s top research theme

EcoScope: Is India ready for capex-led recovery?; All you want to know about India's investments

In this note, we discuss whether COVID-19 could act as an inflection point to shift India's growth model towards investments. We understand and ascertain the need and ability of various economic participants - households, governments, listed companies, and unlisted corporates - to increase their fixed asset investments in the immediate future based on their financial position.
After careful analysis, we share our skepticism regarding the shift from consumption-driven to capex-led recovery in India. Unless the Household, Unlisted Corporate, and Government sectors can improve their financial positions - leading to a demand uptick - a strong revival in investments seems challenging.
If so, this has direct implications on India's credit growth, which may remain subdued due to weak corporate investments.

Piping hot news

Over Rs 30,000 crore guarantee approved for bad bank, says FM Sitharaman

The Cabinet had yesterday approved govt guarantee of up to Rs 30,600 crore to back security receipts to be issued by National Asset Reconstruction Company (NARCL), said Finance Minister Nirmala Sitharaman in an address on the bad bank on Thursday. The NARCL will pay up to 15% of the agreed value for the cash loans and the remaining 85% would be government-guaranteed security receipts.

17/09/2021 24 EN

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MOSL: Morning India (17/September/21): 1. EcoScope (Is India ready for capex-led recovery?); 2. Consumer Durables (Import substitution on track for RACs); 3. Financials (FM announces constitution of a ‘Bad Bank

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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