Month: August 2013

BofA Merrill was the one of the first Research House which said that the SENSEX Earnings will be tapered to as low as Rs 1260 for FY 2014. Bofa Merrill’s estimates were in as early as April so that left ample time for investors like us sitting with 90% investments in Equities to Book Profits in the Rally but unfortunately we didn’t.

In the aftermath of the Massive Appreciation of USD against Indian Rupee and Decade Low GDP Growth Citi Analysts Questioned the Rationale behind India Quoting at 14 P/E on forward earnings when Bank’s Asset Quality is questionable as the Government (more…)

FII Mover & Shaker of Indian Market, Citigroup Equity Research has set the undertone of to be Bearish on India. Citi says that India has gone back to its old normal (FY95-03): lower growth, higher uncertainty and yes, lower market multiples

The macro-economic levels: be it its fiscal deficit, which it reduced from 6%+ to under 3% over the 2003-08 period; inflation – which it sustainably reduced to sub 5% in the 2001-03 period; and its currency, which appreciated almost 25% (Rs49 to sub Rs40) over 2001-07. These no doubt (more…)

The market had its 3rd largest 1 day fall in 4 years falling 4% as the Government is Severely Paralyzed. Is the Indian Market Oversold ? Technical indicators including RSI, 200 DMA are getting close to but are not yet at over-sold levels. Fund manager survey indicate sentiment on India is at a lower end of last 12 month trend but not yet at extreme bearishness levels.

The single biggest factor making investors nervous on India is the currency [Well, impossible to stabilize if FII Withdraw at the rate they have done in June & July $10 Bn or Rs 60,000 Cr from Debt & Equity]. A stabilization of the currency would make us as well as investors more positive (more…)