Dalal Street

The highly uncertain external environment and risk aversion amongst global fund managers may keep Indian markets volatile for next few months.

We knew it for long that sub-prime loss will be booked on P&L, US economy was slowing down, food inflation is rising, European growth slowing down a tad, higher inflation is forcing central bankers in most growing economies to tighten monetary policy stance and valuations are unsustainably high in some emerging markets. Ameicans and FIIs just waited too long to accept this. (more…)

Infosys Technologies Ltd has proposed exit its holding in OnMobile said a report released just a while ago by HDFC Sec. The stock at 32x FY09E earnings estimates is expensive, considering that the only comparable peer listed, Tanla solutions is at 14x FY09E earnings. (more…)

In a report released just a while ago, Deutsche Bank [DB] AG has downgraded Bharti Airtel to HOLD from buy. DB is bullish on the long-term sector growth compared to the street and believe that the sector’s period of sustained out-performance is behind us. Bharti led to an exponential growth and a large revenue base (c18bn wireless revenues in 6-7 years) – a feat unmatched by any other sector in the last five years. However, both growth and margins are likely to be impacted as operators move deeper into the rural areas in search of revenues. A look back on Hindustan Unilever’s past performance reflects a similar dynamic. (more…)