Puneet Wadhwa

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India's GDP to contribute 22% to global growth, says Morgan Stanley

India's GDP to contribute 22% to global growth, says Morgan Stanley

Rediff.com2 days ago

India is likely to be the fastest-growing Asian economy in 2022-23, according to analysts at Morgan Stanley. They expect India's gross domestic product growth to average 7 per cent during this period - the strongest among the largest economies - and contributing 28 per cent and 22 per cent to Asian and global growth, respectively. The Indian economy, they said, is set for its best run in over a decade as pent-up demand is unleashed.

'We expect GDP growth to moderate, but still stay above the trendline'

'We expect GDP growth to moderate, but still stay above the trendline'

Rediff.com1 Aug 2022

'As we expect the economy to continue to grow above the trend line, we expect capex decisions to be taken next year when there is more certainty about the cost of funding and the economy.'

Markets should be able to withstand inflation up to 8%: Credit Suisse

Markets should be able to withstand inflation up to 8%: Credit Suisse

Rediff.com19 Jul 2022

Indian equity markets should be able to withstand inflation up to 8 per cent, said analysts at Credit Suisse Wealth Management in a recent note. Should the rate of inflation move higher than this, the valuation of Indian equities could deteriorate further, they cautioned. The fall from the peak levels has seen Nifty's 12-month forward price-to-earnings (P/E) ratio of 17.6 dip toward its 10-year and 5-year (pre-COVID) average of 16.9, which suggests that valuation froth of Indian equities has settled, said the Credit Suisse analysts.

'Over The Long Term, Equities Are The Best Inflation Hedge'

'Over The Long Term, Equities Are The Best Inflation Hedge'

Rediff.com28 Jun 2022

'Recent underperformance notwithstanding, equities should constitute a major part of investors' financial portfolio.'

5 reasons why BofA Securities has cut year-end Nifty target to 14,500

5 reasons why BofA Securities has cut year-end Nifty target to 14,500

Rediff.com23 Jun 2022

BofA Securities has revised its year-end Nifty target from its earlier projection of 16,000 to 14,500 now - down over 6 per cent from the current levels. Fast tightening monetary conditions, slowing growth/fears of US recession and the likely Nifty EPS (earnings per share) cuts, BofA Securities said, are the key headwinds for the markets in the near-term. However, clarity on macro and monetary policy outlook in the US/India, it said, is the silver lining that could see markets bottom out by August/September 2022.

'Market is pricing rate hike up to December'

'Market is pricing rate hike up to December'

Rediff.com13 Jun 2022

'There will be a series of rate hikes, but the pace and quantum will depend on how the economy in the US and the rest of the world behave.'

Is the fall in information technology stocks overdone?

Is the fall in information technology stocks overdone?

Rediff.com10 Jun 2022

After a sharp correction over the last few months, analysts seem to be turning cautiously optimistic on the information technology (IT) sector and suggest there could be trading opportunities in select counters despite revenue and growth concerns that still plague the sector. "IT stocks valuations have corrected 17 per cent-49 per cent and stock prices have corrected 9 - 42 per cent since mid-December 2021. Nifty IT index valuation has corrected by 27 per cent and price by 21 per cent. "About two quarters ago, we made a case that valuation drivers have peaked.

Key lessons for investors from stock market's bear phase in 2010-2011

Key lessons for investors from stock market's bear phase in 2010-2011

Rediff.com7 Jun 2022

It has been a choppy calendar year 2022 (CY22) for global financial markets amid the spectre of rising inflation that led most central banks, especially the US Federal Reserve (US Fed), to tighten their monetary policy. Most equity indices across the globe have seen a sharp fall from their respective peak levels in this backdrop. FTSE India, for instance, has corrected 16 per cent from its October peak.

JP Morgan downgrades Indian IT sector to 'underweight'

JP Morgan downgrades Indian IT sector to 'underweight'

Rediff.com20 May 2022

JP Morgan has downgraded the Indian information technology sector to 'underweight' as it believes the heydays of the sector are over. Rising margin headwinds in the near-term and the revenue headwinds in the medium-term from a potential macro slowdown, Ankur Rudra and Bhavik Mehta of JP Morgan said in the report, will mean that the sector's earnings upgrade cycle is behind. "We see peak revenue growth behind us and earnings before interest and taxes (EBIT) margins trending down from inflation, mean revision.

Mid, smallcaps may outperform in 2022 despite near-term headwinds: Analysts

Mid, smallcaps may outperform in 2022 despite near-term headwinds: Analysts

Rediff.com17 May 2022

The sharp correction in equity markets has taken a toll on mid-and-small cap stocks that have underperformed their large-cap peers. Thus far in calendar year 2022 (CY22), the mid-and-small cap indexes on the BSE have slipped over 8 per cent and 7 per cent respectively, as compared to a fall of around 6 per cent in the S&P BSE Sensex. While investors dumped mid-and small-cap stocks as the markets remained choppy over the past few weeks, analysts still expect these two segments to see good investor interest from a medium-to-long term perspective.

RBI, US Fed Hike: Expect More Selling on Bourses

RBI, US Fed Hike: Expect More Selling on Bourses

Rediff.com5 May 2022

'The selling in India may emerge as soon as the RBI reverses its interest rate stance.'

'Stock market was being sold false narrative for past few months'

'Stock market was being sold false narrative for past few months'

Rediff.com21 Apr 2022

'Thankfully, most investors in India have now seen through this false narrative and are once again deploying their hard-earned money.

'The more prudent thing would be to buy on dips'

'The more prudent thing would be to buy on dips'

Rediff.com14 Apr 2022

'The recent correction in indices has made the markets cheaper to invest for the long term.'

Gold consumption highest among Indian middle-income group

Gold consumption highest among Indian middle-income group

Rediff.com12 Apr 2022

Consumption of gold is the highest among middle-income households - those with annual income between Rs 2 lakh and Rs 10 lakh - who account for an average of 56 per cent of gold sales over the last five years, according to a nationwide survey conducted by India Gold Policy Centre (IGPC) at the Indian Institute of Management, Ahmedabad (IIM-A). "Per capita consumption is highest among the rich, but total volume still rests with the middle-income group. "With increasing income, there is an increasing propensity to consume gold, although the share of gold in the portfolio does not increase with the same proportion of income," the survey report says.

54 companies wait in the wings with IPOs worth Rs 1.4 trn

54 companies wait in the wings with IPOs worth Rs 1.4 trn

Rediff.com5 Apr 2022

Fundraising activity in the upcoming financial year 2022-23 may even surpass FY22 when 52 Indian companies raised a record Rs 1.11 trillion via initial public offerings (IPOs). According to a note by PRIME Database, 54 companies (including LIC) plan to raise Rs 1.4 trillion and currently hold the Securities and Exchange Board of India's (Sebi's) approval. Another 43 companies, the note said, are looking to raise about Rs 81,000 crore but waiting for Sebi nod.

Goldman Sachs cuts 2022 FPI flow projection to India by over 80% to $5 bn

Goldman Sachs cuts 2022 FPI flow projection to India by over 80% to $5 bn

Rediff.com31 Mar 2022

Foreign portfolio investor (FPI) flows into India may remain tepid in 2022, said a recent note by Goldman Sachs, who now peg the foreign portfolio investment into India at $5 billion in 2022, down from their earlier forecast of $30 billion with risks skewed to the downside. "There has been $15 billion of equity outflows YTD in India already, and the IPO of the largest insurance company has been pushed out. "Additionally, with no mention of India's inclusion in global bond indices in the Union Budget, there are risks to our already conservative base case assumption of an announcement of India's likely inclusion into the GBI-EM Global Diversified Bond Index in Q4-2022," wrote Andrew Tilton, Goldman Sachs' chief Asia-Pacific economist in a co-authored report with Santanu Sengupta and Suraj Kumar.

FPIs may return to Indian equities soon

FPIs may return to Indian equities soon

Rediff.com31 Mar 2022

'The more foreign investors become convinced of the durability of the economic cycle, the more likely foreign flows into Indian equities resume.'

India on the cusp of a bear market: Experts

India on the cusp of a bear market: Experts

Rediff.com16 Mar 2022

The faster-than-expected rise in interest rates by the US Federal Reserve (US Fed) shook global financial markets in early 2022. And now the ongoing war between Russia and Ukraine has lifted commodity prices, with Brent crude oil hitting a 14-year high of $139 a barrel in intraday trade. All these developments have sent the equity markets across the world into a tailspin.

Goldman sees gold at $2,500 by year-end

Goldman sees gold at $2,500 by year-end

Rediff.com10 Mar 2022

Gold prices have surged nearly 18 per cent, so far, in the calendar year 2022 (CY22) to around $2,050 per ounce against the backdrop of the ongoing Russia-Ukraine war and there is more headroom over the next few months, believe analysts at Goldman Sachs who expect the yellow metal to become costlier by another 25 per cent to $2,500 an ounce by the year-end. Goldman Sachs, earlier, had raised its 12-month gold price forecast to $2,150 per ounce considering that an impending US growth slowdown would lead to increased concerns of a US recession and incentivise 300 tonnes of inflows into gold ETFs. At the beginning of the Russia-Ukraine tensions, Goldman Sachs had suggested the resultant rally in commodities could deteriorate the developed market (DM) growth-inflation mix, increase concerns of a American recession, and push gold ETF inflows to 600 tonnes and, in turn, lift gold prices to $2,350 an ounce in 12 months.

Russia-Ukraine war: Commodity prices likely to rise

Russia-Ukraine war: Commodity prices likely to rise

Rediff.com4 Mar 2022

Investors and companies should brace for higher commodity prices over the next few weeks in the backdrop of Russian troops attacking Ukraine on Thursday. Meanwhile, US President Joe Biden threatened new sanctions against Russia for an act of aggression against Ukraine. All this, analysts believe, can push prices of key commodities such as crude oil, ammonia, urea, potash, and phosphates higher.

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