Indian Equity Research and Investment Strategy
We’ll shortly write an in depth research on the Indian Equity Strategy and the way forwards. However, until then since the market has substantially corrected, rejig your portfolio on the basis of Quality of the Stock.
Equity Stock Picking has changed from Momentum and Growth back to Fundamentals. Buying stocks of companies with high FCF, high ROE, low debt, low beta and low capex to depreciation has (more…)
The Indian StockMarket Turned Buoyant as RBI Governor gave some hints of Rate Cuts and Satisfcation over the Budget. We commend RBI Governor’s Daredevil steps not to bow down to illiterate Politicians of India and taking a stand which is in the interest of the nation so far. Here are the key highlights of the Speech @ London School of Economics.
Inflation
If the domestic petroleum sector was a free market and if global prices passed through to domestic prices, demand would arguably have declined in response to rising prices. (more…)
Investigative Blogger Cobrapost.com has put up video clippings alleging that the branches of three private banks — HDFC Bank, ICICI Bank, and Axis Bank—were willing to help its reporter launder money, offer lockers to stack cash, and invest these funds in insurance products.
The Board of Managements of these banks are currently investigating the matter and have issued a statement that they are concerned about the allegations and that they have well-defined Know Your Customer (KYC) and Anti- Money Laundering policies in place. (more…)
Global Institutional Investor and Mover and shaker of the Indian Market, Goldman Sachs has upgraded India to OVERWEIGHT in a report released just a while ago. GS likes Indian equities on both a 3 and 12-month basis.
The increase in corporate tax surcharge in the Union Budget would potentially have muted impact on overall earnings. The 130 bp hike in corporate taxes would potentially lower aggregate EPS by only 2%. Earnings revisions and sentiment have been weak lately, but we expect the cycle to improve.
India currently trades at 13.4x forward 12-month P/E and 2.6x book value. Relative to the rest of region, India is also (more…)