Dhananjay Sinha, co-head, institutional research, Emkay Global Financial Services tells Business Standard in an interview that even as global commodity prices have softened in response to expectations of weaker global demand, the stronger performance of equities is seemingly pre-empting stronger growth.
Most markets have seen significant erosion in investors' wealth this year
After a sharp fall in the share prices of HDFC Bank and other private sector lenders in the past three days, the BFSI (banking, financial services and insurance) sector weighting in the Nifty50 has slipped to a seven-year low of 32.03 per cent, down from nearly 36.6 per cent at the end of March 2023 and 34.5 per cent at the end of December 2023.
Analysts worry about possible loan waiver.
The decline is attributed to lower salary growth and a rise in households' financial liabilities.
Crisis of growth is worsened by the challenging global environment and policy missteps. Returning to 9 per cent growth trajectory will be a tall order.
Indian market has been plagued by negative sentiment and triggers
Second-tier NBFC stocks are trading at 24.4x their trailing earnings, which is nearly twice their 15-year average of 13.9x
During the dot-com bubble, it had touched a high of 1.9.
The rupee has depreciated 2.35 per cent in the past three months and one per cent in the past month, despite strong capital flows and falling oil prices.
Inflows from Europe, falling crude oil to come to the rescue if rupee cracks against the dollar.
Combined net profit estimated to grow 14.6% year-on-year, against a 5.7% decline in the Dec 2015 quarter
World trade has been growing slower than world GDP since 2012.
Asset quality stress has ballooned recently, as growth slowed and interest rates continued to rise.
Inflation trajectory does not match the slump in demand, prolonged pause on rates likely.
But experts say downside limited, pockets of opportunities for investors
New series points to a sharp recovery since FY14.
The turmoil on the Street and a continued fall of the rupee may affect growth stocks, pushing equity investors back to the relative safety of defensive counters, or forcing them to flee markets, or both.
So far, India has attracted over $20 billion in the debt segment, thanks to the rate differential.
Indian CEOs might like to make some serious course correction.
For top IT services firms, revenue growth in FY15 was the slowest since the Lehman crisis
Market hopes govt will hike capital expenditure.
Analysts now expect India Inc to report a decline in both top line and bottom line for the September quarter.
Though Indian banks don't have large exposure to subprime mortgages, analysts are worried at the rise in their restructured loan portfolios and deterioration in credit quality.
An analysis of year-wise movements of average global crude oil prices versus India's GDP reveals no inverse correlation, contrary to wide belief.
Oil and gas sectot may not put up good numbers in Q4.
The fallen bellwether of the technology sector has a strategy to reclaim its lost position.
Centre took Rs 1,002 bn from here in 2017-18, sharply up from Rs 904 bn a year before and Rs 123.6 bn in FY14
HUL, UltraTech, Asian Paints, L&T, HDFC Bank top global valuation charts
In the past 12 months, such earnings have grown in double digits in Europe, the US, Japan and South Korea.
Crude oil prices have more than doubled, pushing up India's import bill and raising fears of a higher current account and fiscal deficit. This will impact corporate earnings.
An action on the rate front is unlikely to figure in Rajan's plan for the moment.
As inflation rate is near the upper limit of the comfort zone, experts rule out rate cuts anytime soon
FIIs accumulated India's top-listed companies at an average valuation of around 16 times.
Softening rural consumption and the likelihood of weak corporate earnings in the March quarter saw investors dump stocks.
This analysis is based on the quarterly earnings for 724 companies.
Indian Hotels, Tata Steel, Tata Teleservices, Tata Motors, Tata Power need some immediate attention of the Tata Group chairman
Combined debt-equity ratio of top companies declines but interest expenses outgrow profits.
The number of infrastructure projects cleared by a monitoring group set up in the Cabinet Secretariat had increased consistently in the past year.
A weaker rupee could aid corporate earnings through its positive impact on export intensive sectors such as information technology services, pharmaceuticals and commodity producers such as metal and mining, and oil and gas companies.
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