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India Equity Research Reports, IPO and Stock News
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Continued global de-risking overshadows upside surprise in June IP; NIFTY falls 2.7% wow
Info Tech fared the worst again this week (-8.4% wow) on growth & demand concerns from the US.
Heavy foreign selling of US$1.02bn wtd, but domestic institutions were buyers of US$1.05bn as of close of August 10, 2011.
We raised India to neutral on a turn in macro cycle, lower oil prices, valuation & policy reforms; our NIFTY 12m target is 6,600.
Our India econ team reduced their FY12 GDP growth forecast to 7.3% on weaker external demand & tighter financial conditions.
Overview
The SENSEX breached 17,000 to close at 16,840
this week (-2.7% wow). A better-than-expected IP
print of 8.7% yoy for June on Friday failed to lift
equities as growth & debt concerns in the US &
Europe continued to weigh on investor sentiment.
The Fed’s QE3 hint and its announcement to keep
rates low until at least mid 2013, failed to provide
sustained succor to markets. This week’s sell-off
was exacerbated by S&P’s downgrade of US debt.
WPI for July is keenly awaited next week & our
India econ team expects a print of 9.3% yoy.
NIFTY price performance
NIFTY fell 2.7% wow & has lost 17.3% ytd
Source: NSE, DataStream, GS Global ECS Research.
Foreign and domestic flows
The divergence between FIIs and DIIs continued as
foreign investors sold US$1.02 bn wtd while DIIs
bought US$1.05 bn as of close of Aug 10, 2011.
Earnings sentiment
MSCI India Industrials had the weakest EPS
sentiment (-10.6%) wow. MSCI India is now
trading at 12.9X forward earnings which
represents a 25% premium relative to MXAPJ.
Commodities
Commodities were down 2.7%, led by Copper (-
8.4%) and Crude Oil (-8.2%); Gold outperformed
(8.7%) wow.
Economic Events & Earnings Results
July WPI (Aug 16); 1QFY12 results: Reliance
Capital, Lanco Infratech & SBI (Aug 13).
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Continued global de-risking overshadows upside surprise in June IP; NIFTY falls 2.7% wow
Info Tech fared the worst again this week (-8.4% wow) on growth & demand concerns from the US.
Heavy foreign selling of US$1.02bn wtd, but domestic institutions were buyers of US$1.05bn as of close of August 10, 2011.
We raised India to neutral on a turn in macro cycle, lower oil prices, valuation & policy reforms; our NIFTY 12m target is 6,600.
Our India econ team reduced their FY12 GDP growth forecast to 7.3% on weaker external demand & tighter financial conditions.
Overview
The SENSEX breached 17,000 to close at 16,840
this week (-2.7% wow). A better-than-expected IP
print of 8.7% yoy for June on Friday failed to lift
equities as growth & debt concerns in the US &
Europe continued to weigh on investor sentiment.
The Fed’s QE3 hint and its announcement to keep
rates low until at least mid 2013, failed to provide
sustained succor to markets. This week’s sell-off
was exacerbated by S&P’s downgrade of US debt.
WPI for July is keenly awaited next week & our
India econ team expects a print of 9.3% yoy.
NIFTY price performance
NIFTY fell 2.7% wow & has lost 17.3% ytd
Source: NSE, DataStream, GS Global ECS Research.
Foreign and domestic flows
The divergence between FIIs and DIIs continued as
foreign investors sold US$1.02 bn wtd while DIIs
bought US$1.05 bn as of close of Aug 10, 2011.
Earnings sentiment
MSCI India Industrials had the weakest EPS
sentiment (-10.6%) wow. MSCI India is now
trading at 12.9X forward earnings which
represents a 25% premium relative to MXAPJ.
Commodities
Commodities were down 2.7%, led by Copper (-
8.4%) and Crude Oil (-8.2%); Gold outperformed
(8.7%) wow.
Economic Events & Earnings Results
July WPI (Aug 16); 1QFY12 results: Reliance
Capital, Lanco Infratech & SBI (Aug 13).
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