We expect another weak performance for 3QFY13 from 91 companies under our coverage universe, reflecting moderate domestic growth outlook amid elevated domestic retail inflation and slower-than-expected recovery in developed economies. Even as economies across the globe struggle to provide growth impetus, weak external demand and contagion risks from developed economies render emerging econom
We expect Sensex earnings (ex Financials, pending re-initiation of coverage) to expand by a muted 5.3% yoy in Q3FY13 as against 12.5% in Q2FY13, led by a slowdown in Automobiles. Including Bloomberg consensus estimates for Financials, growth should still be a muted 8.6% compared to 5.2% in Q2FY13. Non-commodities (ex Financials) are expected to report weak earnings growth (2.2% yoy) led by a
2012 Flashback: Strong returns, huge divergence in institutional flows
In 2012, Indian markets outperformed global peers to deliver 26% returns, quite unexpected at the beginning of the year. Financials was the best performing sector (+57%) followed by Consumer (+47%). Tata Motors was the best performing Sensex stock (+75%), followed by ICICI Bank and HDFC Bank (b
Markets 5 Commandments - to policy makers for continued buoyancy amidst avalanche of global liquidity
* Moderation in input price inflation and relief from lower interest rates unlikely to reflect in quarterly nos US Economy
* Fiscal cliff averted through “a compromise band-aid solution” for now…Fierce batt
Q3FY13 RESULTS PREVIEW
11.7% revenue growth expected during the quarter
We expect stocks under our coverage (ex-banking / NBFCs) to report revenue growth of about 11.7% on a YoY basis. Among sectors, IT, Oil & Gas and FMCG are expected to propel this growth. Revenues of IT companies are expected to be driven by the near 6% rupee dep
By Deepti Govind
BANGALORE - India's manufacturers barely increased production in November compared to the year before as factories closed for holidays a month later than in 2011, a Reuters poll found on Wednesday.
The survey of 25 economists predicted that the index
By Abhishek Vishnoi
Market Eye - Bank of America Merrill Lynch upgraded State Bank of India, Bank of Baroda , and Oriental Bank of Commerce Ltd to 'buy'.
The investment bank says upgrades come on the back of a steepening bond yield curve in the anticipation of RBI rate cuts, stronger-than-expected loan recoveries, and reduced quality
Market Eye - Goldman Sachs maintains its "overweight" call on Indian stocks, with an end-2013 target for the Nifty of 7,000 points. Goldman includes Bajaj Auto Ltd and Tata Steel Ltd in its Asia-Pacific "growth recovery" group of stocks that have favourable growth and valuations, according to its Asia-Pacific outlook re
Please feel free to speak to Kishore Narne, Associate Director Head - Commodity & Currency,Motilal Oswal Commodity Broker Pvt Ltd -
The resolution of fiscal cliff has shown a positive impact on all the asset classes, but mind you the spending cuts are yet to be finalized which could have definite say in the growth of U.S. economy. Coming to the gold, whi
Market Eye - Bank of America-Merrill Lynch says a less dovish U.S. Federal Reserve is good for India. The report comes after Fed officials are increasingly concerned about the potential risks of the U.S. central bank's asset purchases on financial markets.
India would benefit should the Fed turn less dovish by lowering "imported" inflatio
We Thus Expect GDP Growth In FY 14 To Move Up Towards Our Long Term Sustainable Level Of 6.5%. - Mr. Arvind Chari
In our outlook piece for 2012, we had reviewed 2011 as to have been a tough year for Indian fixed income investing from the perspective of bond traders and institutional investors. Stubborn inflation, high fiscal deficit and an aggressive central bank had led to sharp rise in market interest rates and volatility leading to high losses in bond portfolios.
The year 2012 though has b
Investment Demand Has Been Robust And Would Continue To Grow Lending Support To Gold Prices - Mr. Chirag Mehta, Fund Manager- Quantum Gold Fund
Towards the end of 2012 the gold price had increased on an annual basis in each year for a decade. However, it’s been a less-than-stellar performance this year. After setting record high last year, gold’s been in a consolidation mode. It’s not the first time in this Bull Run we have seen gold consolidate. It happened in 2006 and also in 2008. But as more catalysts started e
Investment Team at Quantum Mutual Fund Continues To Have a Positive Outlook For Indian Equities - Mr. Atul Kumar
The year 2012 has turned out to be a good year for equities, even though the Indian economy faced signs of slowdown. The BSE Sensex, for the first 11 months of the calendar year, gave a return of 27.33% on total return (TRI) basis. India was among the top performing emerging markets. Broader indices such as BSE 200 and BSE 500 gave returns which was higher than BSE Sensex, a sign that mid-ca
MUMBAI - Indian companies are likely to see their EBITDA (earnings before interest, taxes, depreciation and amortisation) margins staying firm in October-December, despite continuing pressures on demand growth, CRISIL Research said in a note on Wednesday.
"EBITDA margins will be supported by increasing realisations and softening prices of commodities su
Global research firm CLSA, on Wednesday, maintained ICICI Bank as its top pick in the Indian banking sector for its strong capital adequacy and deposit franchise and recommended a buy rating on the stock with a target price of Rs 1,400—almost 20 per cent higher than its current market price. CLSA said that India’s largest private sector l
Market Eye - Option traders see a probability of Nifty inching closer to 6,200 levels in the January derivative series which ends on January 31.
Nifty January 6,200 call added positions worth $101 million on Monday alongside an increase in NSE's volatility index or VIX, signifying buying action, UBS said in a note.
6,200 January ca
As we welcome 2013, investors are riding high on hopes that the Indian economy may turnaround its fortunes this year driven by the government’s reform push and easing monetary policy conditions that may help revive investment. Analysts are confident that Asia’s third largest economy may pick up momentum in the 2013-14 fiscal as exports reb
Please find below outlook on the equity markets 2013 from Dipen Shah, Head of Private Client Group Research, Kotak Securities:
“Indian benchmark indices fared very well during CY2012, gaining about 25% and were among the top 3 performers when compared to major developed and developing markets.
We believe that, in CY2013, markets will b
Market Eye - Tata Motors Ltd is the best performer among Sensex stocks in 2012, helped by hopes for a turnaround in the performance of luxury unit Jaguar Land Rover.
Infosys Ltd earns the worst performer status among blue chips, given the persistent concerns about global demand for software services. GAIL, down over 9 percent and Bharti Airtel, d
Gold Is Expected To Outperform In The Coming Year - Mr. CP Krishnan, Whole Time Director of Geojit Comtrade Ltd.
Please find Below response on outlook for gold and silver in 2013 by Mr. CP Krishnan, Whole Time Director of Geojit Comtrade Ltd.
What is the outlook for gold and silver in 2013?
Bullion, especially gold is expected to outperform in the coming year. In the first half of 2013, gold probably take a dip, but consolidate later and drift higher.
Views On Banking Amendment Bill By Mr. Rajat Rajgarhia,Director – Research,Motilal Oswal Financial Services Ltd
Please find pasted Below views on Banking Amendment Bill by Mr. Rajat Rajgarhia,Director –Research,Motilal Oswal Financial Services Ltd
View on the Banking Amendment Bill,does it have any major implications for the listed universe for the public sector or the old-generation private sector banks?
We already saw two versions of gui
By Jan Harvey
LONDON - Is gold's extraordinary rally finally about to end as it limps towards the close of its twelfth year of gains? Even a fright over the U.S. budget has failed to revive much interest in a commodity, o
By Miyoung Kim
SEOUL - Business sentiment among Asia's top companies improved slightly in the fourth quarter, reversing two consecutive quarters of declines, while global economic uncertainty remained the biggest concern for the region's firms, a Thomson Reuters/INSEAD survey showed.
The Thomson Reuters/INSEAD Asia Business Sen
The last quarter of the current fiscal may mark the start of downward trend in lending rates in the Indian Banking sector, said Chanda Kochhar, the managing director and CEO of India’s largest private sector lender ICICI Bank. Soon after the Reserve Bank of India (RBI) decided to leave the key rates and CRR unchanged in its December rev
Market Eye - Nomura says fall in November inflation gives credence to view that Indian market rates are falling.
Bank expects a 25 basis points cut in the repo rate at the central bank's January policy review, while putting chances of a rate cut on Tuesday at 35 percent.
Investment bank continues to see value in expressing bullish rates