Indian Equity Research and Investment Strategy
Ambit Capital Research one of the best entities that has been in sync with how the markets move has cut year End BSE Sensex target to 28,000 from 32,000. Ambit cites reasons that a decisive mandate for the BJP in the 2014 General Elections, the Indian economy was entering its fourth wave of economic expansion but that has not materialized.
Even as their Sensex target moved from 36,000 initially (in November 2014) to 32,000 (FY16 Sensex EPS (more…)
There is no doubt that India is in a Structural Multi Year Bull Run. One should not be too much worried about Bull Market Corrections as we have seen it happen 22 times at 10% in the last 10 years. In this backdrop, we’d like to summarize the views of various Foreign Investors who now own 25% of Indian Equity Market while Indians poured all their money in non-productive assets such as Gold & Real Estate.
BOFA Merrill remain positive on the Indian markets over next 6 to 9 months and expect an up-turn in consumption over the next 6 months on (more…)
India continues to trade at a premium to the region, but given its stronger growth expectations under Narendra Modi (#NamoBullRun), it seems well placed on a PEG basis vs. peers. Most market indicators also indicate valuations FAIRLY PRICED with NIFTY quoting at 7,900. With a firm government in place, we think the implementation of reforms could jumpstart earnings in coming years.
Which Sectors of NIFTY Have Reached Peak Valuation ?
Out analyst has beautifully constructed (more…)
Shri Narendra Modi, led BJP has emerged Victorious beyond expectations decimating the Corrupt & Paralyzed Congress which killed the Indian Economy. This is a decisive electoral verdicts since 1984 with the pre poll NDA alliance surpassing the most optimistic forecasts. The political platform now delivered to the NDA is historic and should result in a simultaneous revival of investor, consumer and corporate confidence. With the economy and the investment cycle at the center focus of the new government, equity markets are likely to react to the verdict with euphoria.
India is entering its fourth wave. In the previous three waves, more than two-thirds of all stockmarket returns have come in the first three years.
While the budget will now emerge as the next key milestone for the market, investors should begin to assess what the next government (more…)
The declining likelihood of a fractured mandate in the national election 2014 has made the currency stable, and other key indicators like improving macro has lead Deutsche analysts to believe that it may be time to start focusing on domestic recovery/reform plays. It may be too early to expect any sharp economic turnaround, we believe that the worst is over.
With no reversal in the policy on calibrated diesel price hikes – as many had expected – we believe that the regulatory environment for diesel pricing has seen a structural change. Select PSU banks and state-owned oil companies, which witnessed severe (more…)