A recent political triumph for Prime Minister Narendra Modi’s ruling Bharatiya Janata Party, suggests a sector rotation as opposed to an outright short. Fresh momentum behind Modi’s agenda should benefit infrastructure (cement, power, steel, solar and wind), financial inclusion (smaller banks and finance companies), and consumer non-durables. Sectors that look rich now, including technology, services, higher end banking and exporters will wither away in relative terms.
After big win for Modi, time for rotation trade
Modi’s agenda should favor infrastructure, smaller banks and consumer non-durables
