Emkay: Heatwave, Gulf risks make Varun Beverages, Blue Star tactical buys; QSR, cement under pressure
Emkay flags significant downside risk for Indian equities as Brent threatens $105-110/bbl and 44-45°C heatwave reshapes consumption. Cooling-led names like Varun Beverages and Blue Star seen benefiting; Devyani International and Ambuja Cements face footfall and outdoor-activity drag. Weakness toward Nifty 21,000 viewed as entry point.
What happened
Emkay flags downside risk for Indian markets amid Gulf tensions and heatwave. Sees consumer durables and beverages (Blue Star, Varun Beverages) benefiting from
Key facts
- Brent $105-110/bbl
- Petrol/diesel hike Rs 3/litre
- Under-recoveries Rs 17-18/litre
- Nifty 21,000
- 44-45°C
Why this matters
Heat-driven consumption divergence and Brent at $105-110 open a window to revisit cooling-adjacent bolt-ons while distressed QSR and cement-linked assets become more negotiable on weaker footfall.