Domestic Issues For Next Week

The News flow on Domestic front is quite strong & many corporates have been hit by these non economic news flow & all for wrong reasons, But these news flow will indirectly create more stringent norms for corporate borrowers. Which in turn will create an impact on infrastructure companies which have long gestation periods & debt to equity ratio is skewed towards debt. This will certainly have an impact on the profitability of these companies. On inflation front there is some good news that food prices have started to stabilize & cement prices have started to drop. The over capacity in cement will dent the profitability of cement companies & it will take some time before this sector comes out of the shadows of overproduction.

Views Given By TrendCalls Team