Category: Economy, Markets and Macro Views

The sharp drop in oil prices led the Indian stocks to recover 15% from its July low outperforming the region by 20%. There is skepticism in the oil staying at ~110 levels and Goldman expects the price to rebound within the next 4 months [Q4 2008]. Adding to Indian market woes is valuations remain among the highest in the region and the risks to macro and EPS growth are to the downside. (more…)

A Month ago, the Finance Ministry changed the timing of releasing Inflation data citing that the sensitive data would be ready by Thursday of every week and should be released by evening on the same day. However, I don’t agree with the Finance Ministry’s argument and I think it was directly related to rampant sell-offs on Friday’s in the Stock Market where the Inflation figures kept on rising and older numbers revised upwards in retrospect. (more…)

Latest shareholding data for June 2008 shows a continued drop in foreign ownership of the Indian markets. FII (FIIs+ADR/GDR) share of the BSE-500 now stands at 17.4% (17.8% in March and 19.27% in June 2007). Foreign ownership levels are now back to Dec-2004 levels.

This time its not the company promoters who are increasing their stakes, but it is the Indian Insurance Companies who have raised their ownership level from 4.1% to 4.4% and to some extent retailers and HNIs have also bought seeing their stake go to 9.24% from 9.0%. (more…)

Brokerage houses are totally confused about the markets as they are unable to take a call on the stock. We see the Sanctity of research at CLSA and Citigroup India 😉
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The Index of Industrial Production (IIP) for June 2008 slipped to 5.4%, year-on-year.Industrial growth has fallen from the double-digit levels seen early last year as tight monetary policy and a stronger rupee lowered demand. Manufacturing production was down to 5.9% against 9.7% last year and 3.9% in May. (more…)

Dow Jones India Titans 30 Index is the new benchmark launched by Dwo Jones and Company. Here is a complete list of companies and their weight age in the Index. In Dow Jones Titan Index, no company has a weight age of more than 10% [i.e the cap].

You can check the composition of (more…)