L&T, ABB India: Analysts bet on capex-related plays amid economic revival

"Valuations for consumption stocks now appear stretched while the industrials sector still trades at historical averages," wrote Amish Shah of BofA Securities

India is on the verge of a multi-year capex cycle led by government-funded infrastructure, believe analysts, and prefer capex-related plays over consumption bets in the current market environment. Private Capex, they say, will boost growth beyond fiscal 2023-24 (FY24).

That apart, the decision to set up a government-owned development finance institution (DFI) that can leverage around Rs 3 trillion from the markets going ahead to provide long-term funds to infrastructure projects is an added advantage that will go a long way in boosting the prospects of the capex-related plays, feel analysts.

"We see India on the cusp of a