Positions were “notably reduced” compared with both the previous quarter and year-ago levels, Morgan Stanley analysts including Sheela Rathi wrote in a note. Of stocks under their coverage, Trent Ltd. and BrainBees Solutions Ltd. were among those with the largest reductions.
Meanwhile, spending during the festival season between Sept. 22 and Oct. 21 increased 8.5% from the same time last year, according to data from retail intelligence platform Bizom shared with Bloomberg News. The recent big tax cut helped spur purchases of everything from cars and electronics to kitchenware and sweets.
The sales surge should be taken with caution as some of it was likely due to pent-up demand, Nomura Holdings Inc. economists wrote in a note last week. In another report, Bank of America Corp. analysts said that while headwinds have eased a bit, slow income growth, a weak labor market and fading wealth effect continue to weigh on sentiment and demand.
Bloomberg