Category: Economy, Markets and Macro Views

India’s industrial production rose 17.6% in April, beating market expectations on the upside by nearly 2.5 percentage points. It even came close to putting our own bullish 16% y-o-y number to shame. This reading, along with HSBC’s manufacturing PMI which rose in May, presents a very strong case for the RBI to tighten further and faster. The economy is clearly performing above potential, with capacity hitting constraints due to strong demand. It’s time to hike.

Capital good production, at 73% y-o-y, was the highest since the series began in April 1995. Consumer durables (37% y-o-y in April) (more…)

We are presenting to our readers the Historical Earnings / EPS of BSE 30 Sensex stocks – this is for the first time that such thorough and complete data is put into the public domain.

1992 marks the beginning of Reforms in India with Dr. Singh in the FM’s chair. Companies may have moved in and out of BSE Sensex. However, the benchmark is still sound and represents the growth India offers. Here is how (more…)

Market participants are worried about inflation, rich valuations, high earnings expectations and the rising external deficit (especially in the context of volatile global financial markets). Morgan agrees with the last issue but is more sanguine about the implications of inflation, the state of valuations and the prospects for earnings. On the whole, remain constructive on Indian equities but remain wary of pressures from external sources.

High inflation will hurt equities – (more…)

Mundra Port and SEZ is the developer and operator of
India’s largest & fastest growing private sector ‘landlord’ port. MPSEZ’s asset portfolio is planned to synergize its core port operations and offer end-to-end services on the logistics value chain. ICD + container rail operations will serve as feeders to the port, and SEZ growth should help drive cargo traffic volumes.

Besides potential for scalability at MP+SEZ, the company is actively bidding and developing new ports/terminals in India – a (more…)

In FY10, NTPC’s operating income grew 9% YoY to Rs482.2bn, EBITDA rose 14% YoY to Rs143.2bn, and reported PAT was up 6% to Rs87.3bn. However, adjusting for previous years sales (Rs6.01bn +), change in DTL (Rs4.57bn -), sales related to income tax recovery (Rs7.2bn +), tax related to earlier years (Rs5.25bn +), provision for pay hikes (Rs3.14bn -) and AAD (Rs3.16bn -), the recurring PAT Rs94.85bn is up 14% YoY. The results are in-line with our expectations on a reported basis. (more…)

We wrote over the weekend explaining the crisis in Greece and Europe. Though India is not secluded because its investor base comprises of those FIIs who have exposure to several markets across the globe.

Lets analyze key economic parameters of India first and then see its impact on the markets. India’s European export exposure is limited to 3% of GDP. India’s public debt, at 75% of GDP, is close to peripheral Europe’s. The key difference? (more…)