 "Street bets on companies with finger in foreign pie")
Dalal Street seems more bullish on companies whose businesses cater to a foreign market than those looking inwards.
Two foreign brokerages put out recent reports noting the better earnings of companies from sectors such as Information Technology(IT) and Pharmaceuticals. Earnings upgrades and management outlook too seem to be favouring such optimism, they said.
A JP Morgan India Equity Strategy report said that there seems a continued preference for companies with an export focus.
"IT services and Healthcare also saw meaningful earnings upgrades post the quarterly earnings. IT services majors (ex TCS) beat market expectations. Growth data from developed economies remains relatively better," said the note dated February 17 and authored by Bharat Iyer, Bijay Kumar, Gunjan Prithyani and Adrian Mowat.
A Citigroup Global Markets India Equity Strategy report too noted the spring in the step of companies with a foreign focus.
"We saw it in IT/Pharma earnings in 3Q14 (+37%) - and we see it in managements' commentary and outlook. There's geographic expansion, market momentum and rising ambition - widening its lead over India's domestic business. We believe this part of India's economy and market has legs," said the report dated February 17 and authored by Aditya Narain and Jitender Tokas.
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