Focus on domestic businesses than IT firms in India-:- Equity Research

Morgan. However, recovery in commodity prices and stable dollar in the US is taking away an important drag, he says. India, among EMs, is now coming out of weak loan and capex cycle, he says adding that most of this is aided by policies and reforms undertaken by the government. JP Morgan has an overweight stance on India with expectations of double digit returns as the index moves towards 9,000 level. Strong earnings are expected in 2017, he says. "I would rather own domestically focused business than owing software services company," Mowat says adding that IT firms will get move affected by global events like Brexit. He is bullish on financials and building companies, but advises lower exposure to staples and IT. On the Goods and Services Tax (GST), expected to see light in upcoming Monsoon session, Mowat says that expectations are already low. If the GST doesn’t go through, negative impact will be low.