In the 1920’s, Radio Corp of America (RCI) was the largest company in the US and along with AT&T took over dominance from traditional bellwethers like steel and the oil industry. Disruptors have always changed the way we look at investing. The third and to my mind significant trigger for wealth creation is disruption. While the global chip shortage and supply constraints have put a dampener on select sectors, demand remains buoyant and near term challenges should not cloud long term capabilities of these industries. Channel checks also indicate a robust Q2 as a prelude to the festival demand. Utility & Energy sector underperformed consensus analyst estimates. Technology companies including internet names reported strong results driven by higher utilization and higher margin contracts. Commodity-oriented companies were key outperformers driven by surging commodity prices and balance sheet optimization.
Indian companies have been at the forefront of harnessing these benefits to rapidly scale up global presence.Įarnings over the last two quarters have been robust. In India, the broad-based PLI scheme encompassing most major manufacturing sectors and sub sectors have been incentivized to build export centric capabilities. The ongoing aversion to China and the seismic shift of global supply chains is having a ripple effect across many EM suitors, key among them - India, Vietnam, Indonesia, Malaysia, Thailand, Philippines and Bangladesh. Synergy between policies across the developed world and at home are typical long term triggers for investors. As an emerging market, India like most other EMs are guided by policies of the developed world.
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