PIN - PIN: Quality Remains The Way To Go In India
2024-05-12 01:30:05 ET
Summary
- Few equity markets have performed quite as well as India.
- Factor ETFs like PIN are a great way to add performance.
- Heading into a catalyst-rich period, PIN remains a great pick.
India is currently in the middle of its Q4 FY24 earnings season, and for the most part, large-caps have been resilient. Key economic bellwethers like HDFC Bank ( HDB ) and ICICI Bank ( IBN ) have led the way on the back of solid loan growth and stable asset quality trends. Another positive read-through for demand was the very strong growth for domestic cyclicals in the automobile sector. What has weighed on headline earnings, on the other hand, are the more cyclical energy and metals names, many of which posted rather steep cyclical declines YoY. IT services similarly suffered from continued discretionary spending weakness. On balance, though, large-cap earnings growth is still running at a very respectable low-teens % YoY pace and, perhaps more importantly, about in line with consensus expectations for this year....
PIN: Quality Remains The Way To Go In India