Author: CP

55 of the Top companies have reported results. Aggregate earnings fell 3.2% YoY against streets’ expectation of a 7% fall YoY. In terms of surprise breadth, for 53%, or 29, companies’ net profits exceeded expectations by 5% or more, while 16 companies reported results that trailed our analyst expectations by 5% or less. Only three companies of this pack have reported losses.

Eighteen companies in the BSE Sensex have reported thus far, with aggregate earnings down 11% YoY, compared with expectations of a 7% fall. Excluding the energy sector, the Sensex earnings are down 14%, below expectations. (more…)

India has been one of the best performing markets since mid March with ~ $2.0 bln of FII inflows moving into Indian equities in the past 2 months. Expect to see signs of stress on account of the slowdown, Indian companies’ earnings have been among the least volatile among emerging markets. Earnings are likely to remain under pressure for the next one to two quarters, as the full effects of the earlier monetary tightening measures and the credit squeeze feed through the economy.

Indian markets will continue to take cues from global developments and global market movements. The correlation of Indian markets to global markets has increased significantly over the last 12 months. (more…)

How to read the election numbers is probably the most important question on Investor’s mind. Here are some combinations and its impact on the market.

The best case with a negligible chance is a scenario where the leading coalition gets over 200 seats. This would be expected to cause the markets to soar immediately and would be good longer term too.

The worst is the scenario where both leading coalitions have less than 160 seats. Bad for equities in the short and long term. (more…)