Category: Economy, Markets and Macro Views

The markets is no mood to correct and Bulls have taken total control of the same. Here is Nomura’s Expectations from Indian Equities for 2010.

Growth: The 2H FY09 (fiscal year-ending 31 March, 2009) saw demand reeled in. Expect better growth in FY11F, underpinned by a turn in the investment cycle. Firm signs of a demand recovery are evident. Capacity shortages that had been masked by absent demand are now back to the fore, creating conditions for a capex revival. (more…)

We have mostly covered Equity Strategies of FII active in India. There are over 400 FIIs active on their own license or through the backdoor Promissory Note route and not all of them have their own dedicated Research Houses and hence rely on the Strategies of the FIIs you have already read. Today we would like to have a look at what is Edelweiss’ strategy for the Indian Equity Asset Class.

Liquidity to continue supporting Indian equities in the near-term however as we go forward volatility will remain high. EMs like India – which are passing through a phase of structural upsurge in growth – have often enjoyed clusters of great equity market returns. During the five-year spell of CY03-07, except in CY04, every single year posted a return of over 40% for the Sensex. (more…)

Lakshmi Vilas Bank (LVB), a Tamilnadu based old private sector bank, promises to be an exceptional play with regards to the turnaround growth story. The management has shown results through robust profitability growth supported by both core & other income.

LVB’s deposits have seen opening of current & savings accounts with Tamilnadu alone accounting for 99000 CASA accounts with an average run rate of 800 accounts/day. The bank has also restructured the employee average age to 35 from 52 earlier. The cost (more…)

After the Global Meltdown in 2008, the worst year for equities, 2009 was a year of recovery instilling hope amongst equity investors. Here is how the Indian Market reacted to National and Global News during the year.

FIIs have already purchased more stock in 2009 than ever before in a single calendar year as overall institutional flows are just short of the 2007 high. Until yesterday, FIIs were the major Buyers in the Indian Cash Market with net purchases of over Rs 16,283 cr while their hedge in the Derivatives is a Negative 4,383 cr. Domestic Equity funds have bought mere Rs 614 cr while Domestic Insurance sector is another big bull in the making has bought stocks worth Rs 6500 cr. (more…)

In continuing our coverage on Views and Strategies for 2010, we present Hong Kong based Institutional Investor, CLSA’s Views. It expects 14% return for the market in 2010, as pick-up in the investment cycle and global recovery drive the next leg of earnings upgrades. Q1 of Calendar Year 2010 is likely to be choppy, on revival of macro concerns like inflation, monetary and fiscal tightening and the large pipeline of pending equity issuances; autos, property and power look most vulnerable. (more…)

If you have been tracking the Equity Strategies for 2010, then we are sure you are too excited to know the top picks by Bofa Merrill. But before BUYING into any of these, we would like to enlighten you about – What’s Priced in and What’s Not in the Indian market.

Currently at 17x one-year forward earnings, the Indian Markets are pricing – Global liquidity is likely to stay easy, GDP to grow at 7.8% in FY11 and Earnings growth is likely to recover to over 20% in FY11. (more…)