Political uncertainties can keep flows at a lower level and elections will not make a big difference to long-term growth outlook for India, Mahesh Nandurkar, India strategist at CLSA told BloombergQuint in an interview.

Key highlights of the conversation:

• Current valuations slightly better than what we started 2018 with
• See more downside risks for the markets in near-term
• Expect single-digit returns from the market over the next 12-months
• Strong domestic flows keeping markets at a premium valuation
• Weakening domestic flows not a good sign
• Domestic flows at current levels are still decent
• Will be worried if flows begin to decline from current levels
• Elections do not make a big difference to long-term growth outlook
• Not worried about India's economic growth outlook
• Any form of uncertainty will have a negative impact on markets
• Capex activity unlikely to improve significantly
• Not seeing any pick-up in private capex
• Have not fully seen the impact of NBFC slowdown
• Recent auto numbers reflective of NBFC slowdown
• Crude cooling off is a very big macro relief
• Crude prices at $60-65 will bring CAD down to 2 percent of GDP
• Likely to see GST revenue shortfall of Rs 1.5 lakh crore in FY19
• Fiscal issues will continue in FY20 as well
• Sops given to farmers will further aggravate fiscal issues
• Investors expecting rate cuts instead of three hikes from Fed in 2019

Shares of the telecom equipment maker surged as much as 11.74 percent, the most in over 11 months, to Rs 23.80 after its board approved capacity expansion plan.

The board approved expanding existing manufacturing facility of optical fibre manufacturing plant at Hyderabad from 7 million fibre km to 10.5 million fibre km for Rs 35 crore.

Shares of cement manufacturers fell after brokerage firm CLSA downgraded its stock ratings and lowered its price targets.

Here’s what CLSA had to say:

• Lower energy prices are a relief, but cement prices are the key, and uncertainty prevails here.
• Yet again trim FY19-21 earnings per share estimates for the major players by 3-15 percent.
• Turn more cautious on the sector.
• India Cement: Downgraded to “Sell” from “Buy”; cut price target to Rs 75 from Rs 200.
• Dalmia Bharat: Downgraded to “Underperform” from “Buy”; cut price target to Rs 2,450 from Rs 2,550.
• Shree Cement: Downgraded to "Outperform” from “Buy”; cut price target to Rs 18,275 from Rs 20,100.

Key highlights from the conversation:

• Financing from NBFCs have come down impacting the sector.
• Rural economy is doing very well; expecting good crop this year.
• Q4FY18 was a bumper quarter.
• Expect Q4FY19 to be good.
• Rural economy is doing quite well with the consumption.
• Drop in fuel and diesel costs by 15-18 percent in the last few months will aid demand.
• Discounting has become a part and parcel for marketing strategies in the commercial vehicle segment.
• Discount levels have remained at same levels.
• On a full year basis, margins will remain healthy for the commercial vehicle industry.
• Banks have not cut down financing. The issues are with NBFCs.
• Pick up in the NBFC Funding will boost commercial vehicle sales going forward.
• Industry will revive as soon as NBFC financing is back.
• Quite optimistic that the commercial vehicle financing situation will improve.
• NBFCs will get realigned and soon should be sorted out in around three months.
• We have been performing better than the market when it comes to VECV.

Shares of the auto-parts maker rose as much as 3.2 percent to Rs 1,250.

The company’s Italian arm acquired aluminium die casting company Fonpresmetal. The acquired company has a capacity of 6,500 tonnes and the cost of acquisition was 8.16 million euros.

The trading volume was 12 times the 20-day average for this time of the day, Bloomberg data showed.