The market is ready to start cautiously; Hero MotoCorp, CLSA’s strategic shift in focus
Indian equity markets are expected to open on a lower note on Monday, as indicated by Gift Nifty. Analysts foresee weaker trading ahead of the truncated week, with markets still closed on Wednesday due to the Maharashtra state election. According to experts, a weak start is possible, but some recovery may follow later in the day if foreign portfolio investors (FPIs) slow down their selling activity.
According to a key update, consumer company CLSA has changed its strategic plan, reversing its previous overweight position in China and improving exposure to India. After reducing its overweight position in India to ten percent in early October, CLSA will now return to twenty percent in India, while China will return to exposure.
On the earnings front, Hero MotoCorp is in the clear after posting strong Q2FY25 results that beat market expectations. The company reported its highest-ever revenue and profit, with a 10-point eight-point increase in revenue to Rs 10,463 crore, beating estimates of Rs 10,256 crore. EBITDA stood at Rs 1,516 crore, while net profit rose fourteen percent year-on-year to Rs 1,204 crore, beating expectations by Rs 1,160 crore. Hero MotoCorp attributed its strong performance to improved rural demand and recorded sales of festive goods of sixteen lakh units. The company also announced plans to expand its retail footprint, aiming to cross 100 Premia stores by the end of FY25.
Market participants will closely watch Hero MotoCorp’s performance and the impact of CLSA’s shift on strategy as potential drivers of sentiment in the first half of the session.
