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India Equity Research Reports, IPO and Stock News
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India leads Asian equities higher; NIFTY gains 5.2% wow, best week since September
NIFTY & SENSEX gain 5.2% wow, as Europe & MENA concerns subside.
Banks (CNXBANK Index: +6.3%), tech (CNXIT Index: +5.8%) and infra (CNXINFR Index: +5.4%) led the rebound.
As of market close on Wednesday, Mar 23, FIIs sold US$1.8 bn ytd, while domestic MFs bought US$0.6 bn ytd.
Crude (+7.4%) & Silver (+8.1%) surged wow on heightened unrest in MENA and European sovereign debt concerns.
Overview
Indian equity markets gained 5.2% in their best wow
performance since the week of Sep 03, 2010 (when
they gained 5.4% wow during a month-long rally) as
encouraging earnings from the US revived hopes of
a global economic recovery and helped overcome
mixed news from Japan, MENA and Europe. All
sectors ended in the green with Banks
outperforming (+6.3%). The NIFTY (5,654) &
SENSEX (18,816) closed at two-month highs after
tech stocks witnessed a buying momentum on
strong outlook for demand.
Foreign and Domestic Flows
As of the market close on Wednesday (Mar 23),
foreign investors had sold US$0.05 bn wow, while
domestic MFs bought US$0.004 bn wow.
Earnings Sentiment and Relative Valuation
MSCI India Energy had the strongest EPS
sentiment (4.9%) while MSCI Telcos. had the
weakest EPS sentiment (-1.8%) wow.
Commodities
MCX Spot Commodity Index surged 3.5% wow
driven by Energy (+5.0%) and Metals (+4.1%).
Events
Current Account Balance (Mar 31), Trade (Apr 01)
Focus
Indo-Gulf Interplay
APac: Portfolio Strategy: A calm framework for chaotic times
The market probably over-reacted to the Japan earthquake. Our best-guess
simulation results in a regional index price fall of less than 10bp, compared
to the actual decline of nearly 3%. Assuming no structural change in the
equity risk premium, we estimate that the observed 3% price shock implies
something like a 50%, 25%, and 12% decline in Y1-Y3 earnings for every
stock in the region, which we think is quite extreme. Areas with large
declines but few linkages include financials and telecoms. The Japan
earthquake might have longer-term growth effects for certain industries and
stocks, particularly in energy. But given the uncertainty about these longterm
effects, the probability that many of these effects are medium term at
best, and are restricted to a few sectors, we feel that the market’s reaction
was one of emotion more than logic.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
India leads Asian equities higher; NIFTY gains 5.2% wow, best week since September
NIFTY & SENSEX gain 5.2% wow, as Europe & MENA concerns subside.
Banks (CNXBANK Index: +6.3%), tech (CNXIT Index: +5.8%) and infra (CNXINFR Index: +5.4%) led the rebound.
As of market close on Wednesday, Mar 23, FIIs sold US$1.8 bn ytd, while domestic MFs bought US$0.6 bn ytd.
Crude (+7.4%) & Silver (+8.1%) surged wow on heightened unrest in MENA and European sovereign debt concerns.
Overview
Indian equity markets gained 5.2% in their best wow
performance since the week of Sep 03, 2010 (when
they gained 5.4% wow during a month-long rally) as
encouraging earnings from the US revived hopes of
a global economic recovery and helped overcome
mixed news from Japan, MENA and Europe. All
sectors ended in the green with Banks
outperforming (+6.3%). The NIFTY (5,654) &
SENSEX (18,816) closed at two-month highs after
tech stocks witnessed a buying momentum on
strong outlook for demand.
Foreign and Domestic Flows
As of the market close on Wednesday (Mar 23),
foreign investors had sold US$0.05 bn wow, while
domestic MFs bought US$0.004 bn wow.
Earnings Sentiment and Relative Valuation
MSCI India Energy had the strongest EPS
sentiment (4.9%) while MSCI Telcos. had the
weakest EPS sentiment (-1.8%) wow.
Commodities
MCX Spot Commodity Index surged 3.5% wow
driven by Energy (+5.0%) and Metals (+4.1%).
Events
Current Account Balance (Mar 31), Trade (Apr 01)
Focus
Indo-Gulf Interplay
APac: Portfolio Strategy: A calm framework for chaotic times
The market probably over-reacted to the Japan earthquake. Our best-guess
simulation results in a regional index price fall of less than 10bp, compared
to the actual decline of nearly 3%. Assuming no structural change in the
equity risk premium, we estimate that the observed 3% price shock implies
something like a 50%, 25%, and 12% decline in Y1-Y3 earnings for every
stock in the region, which we think is quite extreme. Areas with large
declines but few linkages include financials and telecoms. The Japan
earthquake might have longer-term growth effects for certain industries and
stocks, particularly in energy. But given the uncertainty about these longterm
effects, the probability that many of these effects are medium term at
best, and are restricted to a few sectors, we feel that the market’s reaction
was one of emotion more than logic.
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