Posted at 10:42 AM , on January 18, 2017
Year 2017 promises to be a challenging year for equities. Firstly, India’s GDP growth may struggle to reach the 7% mark for the full year. That will bring a lot of old-economy company valuations into question. Secondly, US-oriented businesses will be trying to absorb the signals coming from Donald Trump on outsourcing, pharma audits and border tax. Thirdly, oil prices could finally show strength during the year and that will determine the fortunes of many Indian companies in the year. Lastly, two critical trends will drive Indian markets in the year 2017. Demonetization has set in motion the process of digitization and we will see greater convergence of payments banks, telecom companies and NBFCs. This process of digitization will be a key theme to play on in the coming year. Additionally, the passage of GST will be a major push for the coming year. Although the implementation will happen in July 2017, the impact will be felt in the coming year for sure… Continue reading
Posted at 12:17 PM , on October 3, 2016
How much will it impact Indian markets?
In the wee hours of September 29th, the Indian army carried out a series of surgical strikes on terrorist installations in the area adjacent to the Line of Control (LOC) in Pakistan Occupied Kashmir (POK). Even as India continues to congratulate itself, it may be time to sit back and evaluate its implications for Indian markets… Continue reading
Posted at 3:21 PM , on January 4, 2016
It is shifting back from emerging markets to developed markets…
Since the term BRIC (Brazil, Russia, India & China) was first coined in 2002 by Goldman Sachs, the story of global growth has been the story of the rise of emerging markets. While Russia was driven by oil and Brazil by commodities, China and India were driven by the demographic dividends of their billion plus populations. But things are suddenly changing in the last 3 years… Continue reading
Posted at 5:54 PM , on October 15, 2015
The IMF has lowered its global projections for the world economy by 20 basis points for the years 2016 and 2017. Thus the estimated 2016 growth now stands lower at 3.1% as against an earlier estimate of 3.3%. Similarly, the projected growth rate for 2017 stands reduced from 3.8% to 3.6%. So what has driven this deceleration in growth?
Posted at 11:58 AM , on August 11, 2015
A senior banker asked me an interesting question, “If the Indian economy is growing at 7.5%, then why have corporate results been disappointing for the last 3 quarters”? It surely needs to be examined as to why the GDP growth is not being translated into corporate profitability. The answer probably lies across 5 major arguments. Let me explain! Continue reading