It’s official. India believes a government led by Narendra Modi, the contentious prime ministerial candidate for the opposition Bharatiya Janata Party, would be a blessing for the economy. At least, so says Goldman Sachs.
In a note to clients on Tuesday, analysts at Goldman increased their target for the Nifty index at the end of 2014 to 6,900 points. The benchmark index is currently trading around 6,240 points.
Earlier this year, Goldman had a cautious view on India. But the Nifty has gained 30 per cent since the end of August and the bank has good reason to raise its investment outlook. Continue reading »
Sensex 2003-13, Source: BSE
The Sensex hit an all time high on Friday, reaching 21,293 and exceeding its previous high of 21,206 set during the stock market boom of 2008. Read James Crabtree’s story on FT.com here.
The good news for investors comes just before the festival of light, Diwali, which starts on Sunday November 3.
The Sensex, India’s benchmark index, has gained more than 5 per cent in the past month, approaching a three-year high.
The rally in equities is partly to do with the start of the earnings season on October 11. Corporate results for the quarter ended in September have been good so far – but is this optimism a bit early? Continue reading »
Investors have given a thumbs up to Fortis Healthcare, the Indian hospitals chain, after it announced plans on Monday to sell its private clinic network in Hong Kong to Bupa.
Shares in Fortis rallied 6.5 per cent on Tuesday morning before moderating to close up 0.7 per cent at Rs105.25. Continue reading »
In March, India’s benchmark Sensex index was promising to rise above 20,000 points. In May, the Nifty index breached its own high-water mark of 6,200 points. How the mighty have fallen.
By lunchtime in Mumbai on Friday, the Sensex was at a meager 18,765 while the Nifty hovered around 5,675. But how much further will Indian markets fall? Continue reading »
Have investors overreacted to the latest news of the end of the US Federal Reserve’s quantitative easing programme? One Indian brokerage, Ambit Capital, reckons they have. In a note on Thursday, it says the sell-off is a buying opportunity and expects returns on Indian equities to rise in tandem with yields on US Treasuries.
How so? Continue reading »
Ratings agency S&P has warned that the chances of India’s sovereign credit being downgraded to junk is more than one in three, as the economy battles with unsustainable current account and fiscal deficits.
But foreign institutional investors (FIIs) see reasons for cheer as growing inflows send Indian equity markets soaring. On Monday, India’s benchmark Nifty index surged 31 points to 6,229.45, its highest since November 2010. The Sensex too gained 163 points to 20,443.62, its highest since January 2011. Both indices have gained in every session in the past week. What’s going on? And will this rally last? Continue reading »
What’s going on with Indian IPOs? Poor demand, increased competition for retail investment or bad news from companies that went before?
Whatever the reason, fundraising via initial public offerings in the 2012-13 year has been rather flat in India. Companies raised just over Rs60bn ($1.1bn) via IPO in the fiscal year just ended – that’s an increase of only 4 per cent year-on-year, according to stock exchange data seen by the Press Trust of India. Continue reading »
Banks and investment companies are increasingly targeting the United Arab Emirates to attract funds into Indian equities as they seek to capitalise on its large population of wealthy Indians and close trade links, writes Camilla Hall.
Natixis global asset management launched a new Indian equity fund in the UAE last month while Dubai’s Gold & Commodities Exchange set up a new derivative to allow investors to track India’s stock market. Continue reading »
In the middle of January, India’s benchmark Sensex index touched the psychological 20,000 mark. It has since tumbled, closing at 19,271.35 on Wednesday dragged down by profit-taking, pessimism and a disappointing government budget. Continue reading »
Shopping centre, Gurgaon. Photo: Bloomberg
Some 31 per cent of India’s 1.2bn people live in towns and cities according to India’s 2011 census, up from 28 per cent in the 2001 census.
Now the process of urbanisation is speeding up and it is tier 2 and tier 3 cities that are leading the way, argue Sheela Rathi and colleagues at Morgan Stanley in a report published this week.
It’s a theme that will affect businesses, investors and policymakers alike. Continue reading »
What makes a company worth a quarter less than it was yesterday? Shares in National Hydroelectric Power Corporation (NHPC), the state-owned hydro power group, tumbled 24.1 per cent on Monday to Rs19.65.
The fall adds to unexplained heavy selling in mid-cap stocks last week, which is currently being investigated by the Securities and Exchange Board of India (Sebi). Continue reading »
Last September, the Indian government unveiled a reform agenda designed to build investor confidence. Foreign institutional investors have sent Indian stocks soaring in response.
But it seems private equity investors are more difficult to convince. Continue reading »
A glut of new investment products appeared in India over the weekend, designed to bring first-time retail investors into the country’s stock markets with a generous tax break. Good news, surely? Well, characteristically for India’s asset management industry, the truth is more complicated than it needs to be. Continue reading »