Recent reforms by govt makes industry optimistic: IDFC Securities
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Recent reforms by govt makes industry optimistic: IDFC Securities

Last Updated: Friday, October 11, 2013, 20:49
 
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Recent reforms by govt makes industry optimistic: IDFC Securities
Mumbai: Urging people to invest with a long-term horizon, Brokerage firm IDFC Securities on Friday said the recent reform measures undertaken by the government has made the industry optimistic.

The slew of decisions by government across sectors, including fast-tracking project clearances, a commitment to fuel price hikes and getting landmark financial regulations passed, point towards positive change in the future, IDFC Managing Director and Research Head Nikhil Vora said here.

"Nothing really has changed in the last nine months on the ground, but the seriousness with which the changes are being ushered makes us optimistic. The signs of the change will be visible only in some years."

IDFC, which has come up with a thematic report titled 'The story of Chinese bamboo', said in a decade, India will be having at a 7-9 percent growth, fiscal deficit under 2 percent, FDI flows increasing to USD 70 billion from the current USD 20 billion and the current account turning into surplus.

Comparing the current situation of widening current account deficit, sharp drop in the rupee and low growth with the 1991 balance of payment crisis, Vora said with every big change, newer sectors and investment themes emerge which give huge returns over a long period. The current period will also throw up new sectors.

"After the 1991 crisis, we discovered sectors like IT, telecom and private banks with scrips like Infosys, Bharti and HDFC Bank," he said, adding 'old economy' sectors like cement, steel and textiles, which prospered in a closed economy, lost the sheen.

He maintained the current crisis will throw up surprises in consumer-oriented sectors like quick-service restaurants, digitisation and liquor companies.

The IDFC Securities MD said he is very bullish on stocks like Jubilant Foodworks, Westlife, Den Networks and United Spirits, among others.



PTI

First Published: Friday, October 11, 2013, 19:43


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