Market P/E conundrum: More than meets the eye - ICICI Securities

Market P/E conundrum: More than meets the eye

Above-average P/E ratios supported by flows and optimism:

Nifty50 has scaled an all-time high on the back of significant inflows from domestic and foreign investors and optimistic outlook on business environment, which has its underpinnings in a stable government

21/06/2017 5:07:52 PM | Posted in Special Event Reports read full news
ATM cash withdrawals back to pre-demonetization levels - Motilal Oswal

Has demonetization led to higher digital payments?

Doubtful; ATM cash withdrawals back to pre-demonetization levels

*  One of the key structural benefits expected from the historic demonetization announced in November 2016 was a shift towards digital payments. However, the aggregate value of all transactions under elect

21/06/2017 4:55:02 PM | Posted in Special Event Reports read full news
Liquidity surplus to improve this week - Kotak Sec

* Liquidity surplus to improve this week.

The banking system liquidity surplus tightened to average ~Rs 2.95 tn for the week ending Jun 17 as against Rs 3.36 tn for the week ending Jun 9. The reduction in surplus liquidity last week was, expectedly, led by ~Rs 45,000 cr of advance tax outflows along with regular Gsec and SDL auction flows even as the

20/06/2017 3:43:08 PM | Posted in Special Event Reports read full news
CAD narrows to 0.7% of GDP in FY17 - Motilal Oswal

CAD narrows to 0.7% of GDP in FY17

Gross domestic savings fall to 13-year low

* India’s current account deficit (CAD) widened from USD0.3b (or 0.1% of GDP) in 4QFY16 to USD3.4b (or 0.6% of GDP) in 4QFY17, but slimmed from USD22.1b (or 1.1% of GDP) in FY16 to USD15.2b (or 0.7% of GDP) in FY17. Excluding gold, current ac

19/06/2017 2:55:10 PM | Posted in Special Event Reports read full news
Sensex reconstitution; EPS downgrade of 1.5% - Motilal Oswal

Sensex reconstitution; EPS downgrade of 1.5%

Weight of Financials to rise 250bp; Tech weight to hit near-decade low

* The S&P BSE Sensex composition is all set for a reshuffle on Monday, 19 June 2017. Kotak Mahindra Bank (KMB) will replace GAIL India, and Tata Motors Differential Voting Rights (DVR) will be included as a

16/06/2017 5:27:26 PM | Posted in Special Event Reports read full news
Farm loan waivers: Economic costs and other effects - Kotak Sec

Farm loan waivers: Economic costs and other effects.

Policies such as farm loan waivers do not address the fundamental problems of the Indian agriculture sector. In fact, it creates moral hazard problems leading to expectation of such wavers and inducing demonstration effects at the national level even if the economic impact is restricted to specific

16/06/2017 5:12:19 PM | Posted in Special Event Reports read full news
Lower trade deficit and FPI flows buoy BOP - Kotak Sec

Lower trade deficit and FPI flows buoy BOP.

4QFY17 CAD/GDP improved from 3QFY17 on the back of lower trade deficit. Capital account flows were buoyed by FPI investments even as banking capital reverted gains seen in 3QFY17. FY2017 CAD/GDP was at 0.7% with BOP at US$21.6 bn. We estimate FY2018 CAD/GDP at 1.5% (marginally higher than our earlier estimate

16/06/2017 5:08:36 PM | Posted in Special Event Reports read full news
Strategy India The impossible trinity of farm income - Kotak Sec

The impossible trinity of farm income.

The past decade has more or less established the fact that farm incomes in India cannot rise on a sustainable basis without (1) higher inflation and/or (2) periodic government support. Both price-led (likely higher inflation) and volume-led (likely lower farm output prices) growth models are inherently suspect. T

16/06/2017 3:44:04 PM | Posted in Special Event Reports read full news
BoP Review CAD to widen on higher consumption drive - Emkay

CAD to widen on higher consumption drive

External balance turned favourable, on the expected lines in Q4FY17 based on huge influx in FII flows and narrowing of merchandise deficit. CAD narrowed to 0.6% of GDP due to relatively high exports growth and also with marginal improvement in invisibles support. Decline in ECB flows and lower domestic credit gr

16/06/2017 3:38:53 PM | Posted in Special Event Reports read full news
Trade Review Cyclical expansion in trade deficit - Emkay

Cyclical expansion in trade deficit

Trade deficit remained elevated in May’17 at USD 13.8bn reflecting higher consumer oriented import demand and softening in export growth. Elevated engineering exports growth is indicating upturn in global demand led by advance economies. Imports grew by 33.1% in May on the back of surge in domestic consumption,

16/06/2017 3:16:34 PM | Posted in Special Event Reports read full news
CPI inflation continues to slip lower - Kotak Sec

Stage set for an August rate cut.

CPI inflation continues to be benign and seems set to dip below the RBI’s inflation target band of 2-6% as early as June. A combination of favorable base effects as well as softness in price momentum is contributing to low inflation prints in 1HFY18. Given the expected June inflation and the softer policy tone i

15/06/2017 5:37:48 PM | Posted in Special Event Reports read full news
Equity AUM up for the sixth successive month - Motilal Oswal

SUMMARY: Equity AUM up for the sixth successive month

Key observations

* Domestic mutual funds (MF) continued their positive momentum, with equity AUM touching a new high of INR5.2t (+2.7% MoM, +40% YoY) in May.

* The increase in equity AUM was led by a rise in market indices (Nifty up 3.4% MoM) and higher equity sc

15/06/2017 5:17:01 PM | Posted in Special Event Reports read full news
May WPI inflation reaffirms benign underlying dynamics - Kotak Sec

May WPI inflation reaffirms benign underlying dynamics.

Weakening food inflation dynamics contributed the most to low headline WPI inflation, largely mirroring the trends seen in CPI inflation. Core inflation picked up marginally, largely owing to sharp sequential increase in ‘basic metals’. Even as WPI inflation is likely to edge up as we

15/06/2017 4:12:38 PM | Posted in Special Event Reports read full news
Need for regular survey on informal sector output: Chief Statistician

 In the wake of criticism that GDP calculations failed to measure the impact of demonetisation on the unorganised sector, the government's Chief Statistician prefers a regular and timely sample survey over which discussions are already on with technical experts.

"Yes, we do have a direct measure of the unorganised sector in the GDP calculations. The least direct in the u

15/06/2017 3:44:31 PM | Posted in Special Event Reports read full news
Bharat Financial Inclusion Limited plans 100% digital financial inclusion with 2 lakh

Bharat Financial Inclusion Limited plans 100% digital financial inclusion with 2 lakh Kirana Points across 16 states

A business model meeting multiple stakeholder requirements, namely the Government’s cashless, financial inclusion and livelihoods goals; convenience of cashless for borrowers in the remotest locations; new peaks in efficiency and

14/06/2017 5:15:30 PM | Posted in Special Event Reports read full news
Strategy India Hypothetical exercise trying to link 'output' volumes with 'input' multiples - Kotak Sec

What’s in a multiple after all?

We wonder if the Street is paying sufficient attention to underlying assumptions (volumes, profitability, market shares, market structures, among others) while assigning higher ‘target’ multiples (P/E or EV/EBITDA) to ‘justify’ the rapid inflation in stock prices. Our hypothetical exercise

14/06/2017 4:53:10 PM | Posted in Special Event Reports read full news
Revival in sales fails to lift earnings as margins compress - Emkay

Revival in sales fails to lift earnings as margins compress

* Although, net sales growth imporved to 10.6% yoy in Q4FY17 (Sensex companies ex Oil & Finanicals) EBITDA margin shrunk due to higher input cost inflation. Sharp slowdown in GVA to 5.6% clearly explained the shrinkage in EBITDA margin growth to 131bps. Lingering impact of demonetization w

14/06/2017 4:38:15 PM | Posted in Special Event Reports read full news
IIP and CPI Review - Impact of demonetization still lingers - Emkay

Impact of demonetization still lingers

Apr’17 IIP grew by 3.1% yoy, slightly lower than 3.8% yoy in Mar’17. Although, the IIP under the new series has reported higher number compared to the previous series, the slowdown post demonetization is quite evident. This is especially evident in Consumer Durables growth (declined by 4.4% on an avera

13/06/2017 3:20:12 PM | Posted in Special Event Reports read full news
Special Report - Regulator blocks public scrutiny of firms with tainted brokers

By Benjamin Lesser and Elizabeth Dilts

NEW YORK - In three years of managing investments for North Dakota farmer Richard Haus, Long Island stock broker Mike McMahon and his colleagues charged their client $267,567 in fees and interest - while losing him $261,441 on the trades, Haus said.

McMahon and others at National Securities Corporation, for instanc

13/06/2017 10:42:56 AM | Posted in Special Event Reports read full news
EU`s Juncker urges London not to delay Brexit talks

PRAGUE- European Commission President Jean-Claude Juncker said on Friday he hoped the result of Britain's elections would have "no major impact" on EU-UK divorce talks between the bloc and London, and advised London not to delay the start of negotiations.

Britain and the European Union had agreed to begin Brexit talks on June 19.

"I do str

Monetary Policy - Neutrality maintained as lower inflation seen transient - Emkay

Neutrality maintained as lower inflation seen transient

The Reserve Bank of India (RBI) has maintained status quo on its policy rate and on its ‘neutral’ stance while lowering the inflation projection. Lower than expected CPI inflation in the near term (3.0% in Apr’17) has prompted RBI to lower the inflation trajectory to 2.0-3.5% for

8/06/2017 5:10:01 PM | Posted in Special Event Reports read full news
The weekly average surplus improved at ~Rs 3.6 tn for the week ending Jun 3 - Kotak Sec

* Liquidity surplus improved last week.

The weekly average surplus improved at ~Rs 3.6 tn for the week ending Jun 3 compared to Rs 3.3 tn for the week ending May 26. After having dipped to the week’s low of Rs 3.21tn in the middle of the past week, the liquidity surplus increased sharply by ~Rs 860 bn to end the week at ~Rs 4.08 tn, led largely

8/06/2017 2:40:53 PM | Posted in Special Event Reports read full news
Big Indian state banks need up to $14.8 billion capital by March 2019 - Moody's

MUMBAI  - Moody's Investors Service said on Thursday the 11 Indian state-run banks that it rates could need up to 950 billion rupees ($14.76 billion) in equity capital by March 2019, far above the 200 billion rupees the government plans to inject into state banks by then.

Weak capitalisation levels will remain a key credit weakness for the 11 banks, the ratin

We can only hope that the market is fated for better than Dorian Gray - Kotak Sec

The ‘Pictures’ of Dorian Gray. The performance of several market darlings over the past few years brings to mind the Oscar Wilde classic of the eternally youthful man whose portrait shows his true, wretched state of being. Stock prices suggest that companies are doing fabulously well while financial and operating metrics show a less glamorous picture. A lot is ridin

8/06/2017 2:27:00 PM | Posted in Special Event Reports read full news