MOSL: Morning India (5/December/17)-1. Bulls & Bears (November); 2. EcoScope; 3. Prism Cement; 4. KEC International; 5. Music Broadcast

​MOrning India (5/December/17): 1. Bulls & Bears (November); 2. EcoScope; 3. Prism Cement; 4. KEC International; 5. Music Broadcast

Today’s top research theme

• Bulls & Bears: Markets consolidate in November; Earnings - a reason to cheer
  
• Nifty consolidated in November, after a stellar 5.6% rally in October. FIIs were net buyers for the second straight month (USD3b) and DII flows were robust (USD1.4b) in November. Midcaps (+1.6% in November, after an 8% upmove in October) outperformed the Nifty, led by robust DII flows, and continued to command a rich premium of 62% v/s large caps.
  
• After a long time, earnings did not disappoint. Sales, EBITDA and PAT for MOSL Universe ex OMCs increased 10.4%, 13.9% and 9.2% v/s expectations of 10.9%, 10.9% and 11.7%, respectively. More importantly, the quality of earnings was much superior compared to the previous few quarters.
  
• Real Estate (+6%), Technology (+4%), Media (+3%), PSU Banks (+2%), Private Banks (+2%) and Consumer (+1%) were the top performers. Seven sectors delivered negative returns in November.
  
• Key near-term trigger is outcome of Gujarat state elections - victory of BJP will be cheered by markets, in our view. We expect consumption to revive in 2HFY18. We had outlined our thesis on rural consumption revival in our recently released Volume II of Rural Strategy.
  
• India's share in the world market cap is at 2.3%, below its long-term average of 2.4%. Over last 12 months, world market cap has increased 47.6% (USD31.4t), while India's market cap is up 45%.