NIFTY treads water (+0.4% wow); investors await outcome of a data heavy week ahead  Goldman Sachs

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


NIFTY treads water (+0.4% wow); investors await outcome of a data heavy week ahead
 Banks gained 1% wow ahead of the RBI’s policy meet while Tech lost 0.8% on continued concerns surrounding US growth.
 Ytd foreign inflows of US$ 0.6bn and domestic inflows of US$ 4.8bn ytd as of close of Sep 07, 2011.
 Commodities gained 1.3% wow led by precious metals. Copper (-1.7% wow) was the major underperformer.
 1H11 earnings wrap up: MSCI India’s earnings (48% of CY2011E) were helped mainly by Materials (75% of CY2011E.)
Overview
NIFTY pared weekly gains on Friday to end flat
(+0.4%) wow.  Following three days of straight
gains, NIFTY fell 94 points on Friday after the steel
ministry cut FY12 demand estimates by half.
Weak global cues also dampened sentiment on
Friday. Next week promises to be an eventful one
with three key data prints scheduled for release.
Our India econ team expects July IP at 6.5% yoy,
Aug WPI at 9.7% yoy & the RBI to pause at the
Sep 16 policy meet and for the rest of 2011.
NIFTY price performance
NIFTY ended flat wow, down 17.5% ytd
Source: NSE, DataStream, GS Global ECS Research.
Foreign and domestic flows
Foreign investors bought US$ 507mn wtd while
DIIs sold US$ 151 mn wtd (as of Sep 07, 2011).
Earnings sentiment
MSCI Industrials saw the weakest EPS sentiment
(-9.4%) wow. MSCI India is trading at a 25%
valuation premium relative to MXAPJ.
Commodities
Commodities rose 1.3% wow led by Silver (+3.7%)
& Gold (+3%). Copper (-1.7%) & Energy (+0.4%)
underperformed commodities wow.
Economic events
July IP (Sep 12), Aug WPI (Sep 14), RBI Monetary
Policy Meeting (Sep 16)
Focus
1H11 earnings wrap-up