Current account deficit may cap rupee gains: HSBC

Market Eye - HSBC says India's large current account deficit will remain a source of "discomfort" for the market and make it difficult for the rupee to appreciate in a sustained manner.

However, the rupee weakness may be limited as the trade deficit has been priced in somewhat, while debt inflows have remained 'strong' recently, the not

Companies' profitability may improve in 2013/14: CRISIL

MUMBAI  - Indian companies' profitability is likely to improve in 2013/14 if banks trim their lending rates by another 25 basis points, leading to a cut in interest costs for these firms, ratings agency CRISIL said on Tuesday.

The interest coverage ratio which measures the opera

Earnings downgrades to continue in FY14: BofA-Merrill

Market Eye - Bank of America Merrill Lynch says it expects FY14 Sensex earnings per share (EPS) to be downgraded below 1,300 rupees, which is a growth of under 10 percent versus current expectations of 17 percent, citing concentration risk and a delay in economic recovery.

The investment bank says five stocks, namely Oil and Natural Gas Corporation Ltd , ICI

Yes Bank shares to rise over next 30 days: Morgan Stanley

Market Eye - Shares in Yes Bank gain 2.2 percent after Morgan Stanley said in a note that share price would rise relative to the country index over the next 30 days, citing improving liquidity conditions in the banking system and valuations, dealers say.

The investment bank said, "We expect wholesale funding institutions to do well, as funding costs red

Sobha Developers to rise in next 30 days - Morgan Stanley

 Market Eye - Morgan Stanley says share price of Sobha Developers is expected to rise in absolute terms over the next 30 days as the stock has traded off recently, making short-term valuation much more compelling.

"Sobha stock is down 20 percent from its recent peak two months back, and now trades at 11.5 times F14 expected EPS and a 40 percent dis

CAD likely to come down to 4.5% in Q4: Nomura

News Details

India’s current account deficit (CAD) is likely to come down to around 4.5 per cent in the last quarter of the current fiscal from 6.7 per cent in Q3 of FY13, said Nomura in a research report. The Japanese firm estimated a CAD of 5 per cent for this fiscal and also pegged it at the same level for the next financial year. Nomura said that trade d

Domestic 2-wheeler industry to post 4-5% growth in FY13: ICRA

News Details

Given the slump in demand as well as base effect, the domestic two-wheeler industry is expected to report moderate volume growth of around 4-5 per cent in 2012-13, a recent ICRA report revealed. The credit rating agency, ICRA in a report said that over the medium term, the two-wheeler industry is expected to report a volume CAGR of 8-9 per cent, to re

RBI will eventually cut rates by another 50 bps by mid-2013: Barclays Capital

Market Eye - Barclays Capital says the March selloff in Indian government bonds is "overdone." BarCap says RBI will eventually cut interest rates by another 50 basis points (bps) by mid-2013, noting it interpreted RBI's policy statement on March 19 as being "balanced", and not the hawkish tone that markets have interpreted.

* "We

India Inc’s revenue growth to drop to 6-7% during Q4 2013: CRISIL Research

News Details

Attributable to weakening demand, revenue growth of India Inc, excluding banks and oil and gas companies, is likely to drop from 17.5 per cent in fourth quarter of financial year 2012 to just 6-7 per cent during January-March 2013, CRISIL Research said in a statement. While stating that consumption-led sectors are experiencing moderation in growth, t

Investors' fears of euro zone breakup rise in March: survey

BERLIN - The number of investors who believe a member of the euro zone will quit the single currency bloc over the next year rose to the highest level this month since last September amid concerns over crisis-stricken Cyprus.

The March poll of around 1,000 investors published by research group Sentix on Monday showed 41.05 percent expected at least one count

Investor pessimism in India overdone: Deutsche

Market Eye - Deutsche Bank believes the recent investor pessimism in India is overdone and sticks to its BSE Sensex target of 22,500 by the end of December.

Deutsche says the government may shift to executive decisions to pass its agenda, focusing on actions that do not require parliamentary approval, thus reducing concerns about its reform agenda after a ke

Wall Street bonuses to rise 15 % this year - consultant

By Lauren Tara LaCapra

NEW YORK - Bonuses at Wall Street firms will rise 15 percent this year despite ongoing pressure from investors, regulators and politicians about compensation levels, according to compensation-consulting firm Johnson Associates Inc.

The projected rise in pay would come after a 5 percent increase in 2012, which was consi

Earnings, govt commitment for reforms & global cues key for market in April- Kotak Securities Ltd

Below is the perspective on the markets from Sanjeev Zarbade, Vice President – Private Client Group Research, Kotak Securities:

“It was a disappointing week for equity investors as all the major markets including the Sensex, Dow Jones, FTSE and Nikkei ended in the negative zone. The Sensex was the biggest loser among them, down 3.6% for the week. As in past weeks, we h

Bharti shares technically vulnerable: analyst

Market Eye - Bharti Airtel Ltd shares are in a "perfect head and shoulders pattern", making the stock vulnerable to further falls to 260-265 rupee levels, says A K Prabhakar, an analyst at brokerage AnandRathi.

"The

Sensex to hit record high by December: Reuters Poll

By Rahul Karunakar and Rafael Nam

BANGALORE/MUMBAI  - Indian stocks will hit a record high this year on looser monetary policy and fiscal reforms, but concerns over a widening budget deficit could limit the upside, a Reuters poll predicted.

The benchmark BSE index is expected to rise 13 percent over the rest of 2013, half of the 26 percent surge last year, accordin

Global uncertainty and domestic woes put market under cloud - Asit C. Mehta

Below is the today's market quote from Mr. K. Subramanyam, AVP - Institutional Research, Asit C. Mehta  

Global uncertainty and domestic woes put market under cloud 

The Greece episode has brought gloom around global markets and threatens to brew a fresh crisis on its own .Amidst  this ,our own domestic events like the cobrapost expose on banks ,

We expect RBI to be accommodative to growth concerns going forward - MotilalOswal

Below is the quotes on RBI policy by Mr Motilal Oswal,CMD,Motilal Oswal Financial Services Ltd 

Also find his pictures attached 

Please feel free to use it if you are doing any stories re the same   

RBI has provided the expected fillip to the economy by cutting rates by 25bp. This is second in the series and holds the promise of RBI walki

Views on RBI Policy by Mirae Asset Global Investments

Below is the views /quote on RBI Policy by Mirae Asset Global Investments

Please feel free to quote Yadnesh Chavan, Fund Manager - Fixed Income, Mirae Asset Global Investments (I) 

“In today`s mid-term policy review RBI cut the repo rate by 25 bps which is very reasonable given the limited elbow room which RBI has given the divergence between wholesale inflat

INR takes 'double blow', keep 56/dollar target: Macquarie

Market Eye - Macquarie says INR takes a 'double blow' from a marginally less dovish RBI and negative political development which should take the wind off the government's reform sail, but adds developments are not a 'knock out'.

The investment bank maintains a modestly negative view on INR, keeping its 3-month USD/INR target at 56 for now.

Expectation of 75bps cut in repo rates in CY13, including today’s rate cut - Kotak Securities Ltd

Below is the perspective on the Monetary Policy from Mr. Dipen Shah, Head of Private Client Group Research, Kotak Securities:

“The RBI cut repo rate by 25bps, along expected lines. However, it has indicated that, the potential for further cuts is limited.

The RBI has also made future cuts dependent on Government action relating to containment of fiscal deficit and

Expert View - DMK withdraws from coalition

MUMBAI  - The Dravida Munnetra Kazhagam (DMK), pulled out of the Congress-led UPA coalition on Tuesday in protest against the government's position on a U.S.-backed United Nations resolution on war crimes carried out during Sri Lanka's civil war.

COMMENTARY

RUPA REGE NITSURE, CHIEF ECONOMIST, BANK OF BARODA, MUMBAI

Expert views: RBI cuts repo rate, keeps CRR unchanged

MUMBAI  - The RBI cut its benchmark policy rate by 25 basis points on Tuesday, for the second time since the start of the year in a bid to help revive flagging growth in Asia's third-largest economy, but warned that its scope for further policy easing is limited.

The Reserve Bank of India lowered its repo rate to 7.50 percent and left the cash reser

RBI seen cutting repo rate by 25 bps: Reuters Poll

By Neha Dasgupta and Shamik Paul

MUMBAI  - The RBI is expected to cut policy rates on March 19, according to a Reuters poll, after the weakest economic growth in a decade, slowing inflation and a commitment by the government to contain its fiscal deficit.

Of 40 analysts polled, 32 expect the Reserve Bank of India to cut the policy repo

Currencies pose a risk to Indian IT services, says Deutsche

Market Eye - Deutsche Bank warns India's technology services sector could be hurt by currencies, offsetting a steady improvement in corporate spending outlook.

The impact from movements in the euro, sterling, and Australian dollar against the U.S. dollar could reduce U.S. revenue by 1.7-2.4 percentage points for Indian IT companies, Deutsche estimates.