Stories
Matt Orton Sees India Stock Opportunities Amid FII Outflows, Picks M&M and Nykaa
- •Raymond James Investment strategist Matt Orton advises investors to remain selective and deploy capital gradually in the Indian market amid pressures from foreign institutional investor outflows and a weaker rupee.
- •Despite near-term challenges for broader markets, Orton highlights strong buying opportunities in stocks like Mahindra and Mahindra, Eicher Motors, Nykaa, and Adani Ports and SEZ.
- •He notes that Nykaa benefits from a unique Indian growth story driven by an expanding middle class and strong performance in its core beauty business.
- •Globally, Orton points out that tech-led rallies in the US continue to be supported by heavy capital spending from hyperscalers, keeping them temporarily resilient against rising interest rates.
Key Questions Answered
Matt Orton highlights stock opportunities in companies such as Mahindra & Mahindra, Eicher Motors, Nykaa, and Adani Ports and SEZ, advising investors to deploy money gradually. Secondary sources also note his preference for names like ICICI Bank, Bharti Airtel, and DLF.
The US tech rally is heavily supported by massive capital spending from hyperscalers on artificial intelligence, making the sector relatively rate-insensitive for now. However, Orton notes that higher rates are taking a toll on the average stock and other global markets.
Orton views HDFC Bank as a 'show-me' story that needs to deliver stable ROE and improve guidance over the next couple of earnings seasons to work through previous management issues. In contrast, he considers ICICI Bank a proven high-quality bank proxy that has already been rewarded by the market.
