EUR 120.00 For Business Accounts Only

MOSL: Morning India (1/November/19): 1. Consumer (Demand lights up in the festive season); 2. Utilities (Stressed asset resolution: Biding its time); 3. Ecoscope; 4. IOCL; 5. Container Corp; 6. Tata Chemicals;

MOrning India (1/November/19): 1. Consumer (Demand lights up in the festive season); 2. Utilities (Stressed asset resolution: Biding its time); 3. Ecoscope; 4. IOCL; 5. Container Corp; 6. Tata Chemicals; 7. Laurus Labs

 

Today’s top research idea

Consumer: Demand lights up in the festive season

We conducted post-festive season channel checks to understand the demand environment in Mumbai. Although the sample size is too small to make generalizations, the broader inference is that demand in this festive season has been largely in line or better than expectations unlike the last few years. Key takeaways:

• Jockey's exclusive brand outlets (EBOs) are performing well, unlike the festive season last year.
• Tanishq - jewelry demand has been healthy.
• Domino's outlets in this region appear to be doing well and better than QSR peers.
• The findings concur with our recently changed view that stocks with a discretionary consumption play offer a better scope for earnings growth and stock price returns compared to staples.

Piping hot news

Core sector output falls to -5.2%, worst in 14 years

The bad news on the Indian economy just got worse. The core infrastructure industries’ output—measuring a basket of eight sectors accounting for two-fifth of India’s factory output—contracted to the lowest in at least 14 years, pointing to a deepening industrial slowdown. The gauge contracted by 5.2% in September from a growth of 4.3% in the year- ago period, according to data released by the commerce and industry ministry on Thursday.