2. Equity View:
The first half of FY16 has ended with 9% growth rate for companies which form Sensex. In the beginning
of the year the expected growth rate was 14% thus companies are expected to deliver 19% in the second
half to make up for the first half. This target seems unlikely to be achieved thus there could be downward
trend in market movements.
There are numerous other reasons for markets going down but the most worrisome factor is earnings of
the companies which has not picked up as forecasted. Considering factors like sub-par monsoon, the 9%
growth rate is just about fine but if companies deliver 12 – 13% growth rate in second half then it will
boost 14 – 15% growth for FY17. Lower interest rate cycle will also play crucial role in supporting
companies to achieve better earnings as expected. Currently, it is a good time to accumulate stocks till
budget season because Sensex is expected to hover around 26000 – 28000 levels. There will be a close
eye on winter session of the parliament for any progress on GST (Goods and service tax) or for the
passage of bankruptcy code. Later on, budget will be the next trigger for market movements. Hence, the
expected growth rate for the entire FY16 is around 11% as compared to 14% which was forecasted
earlier.
3. News:
DOMESTIC MACRO:
Indian shares posted their third straight weekly loss on Friday after earlier hitting an over six-
week low due to disappointment over second-quarter earnings as well as concerns over rising
foreign investor outflows.
India's annual consumer price inflation quickened to 5 percent in October
India has eased foreign direct investment norms in 15 major sectors, including mining, defence,
civil aviation and broadcasting, the government said on Tuesday, in a bid to drum up investment
and speed growth.
GLOBAL MACRO
Euro
Economic growth in the euro zone slowed unexpectedly in the third quarter as weaker foreign
trade held back leaders Germany and France, and with much of the rest of the bloc
underperforming.
Britain and India welcomed more than 9 billion pounds ($13.7 billion) in commercial deals during
a visit by Indian Prime Minister Narendra Modi.
United States
Paris attacks seen causing short-term global markets drop
U.S. Federal Reserve officials lined up behind a likely December interest rate hike with one
key central banker saying the risk of waiting too long was now roughly in balance with the
risk of moving too soon to normalize rates after seven years near zero.
China
China's October inflation data showed persisting if not intensifying deflationary pressure,
spurring analysts to expect more moves to stimulate the slowing economy by year-end.
Asian stocks fell to six-week lows on Monday and emerging market currencies wilted as investors
sought the safety of the greenback in the wake of Friday's attacks in Paris and downbeat
economic data.
Indices:
Date Sensex Midcap Auto Bankex CD CG FMCG HC IT Metals O&G Power Realty Teck
9/11/2015 26,121 10,872 18,492 19,431 12,031 14,446 7,961 16,749 11,230 7,147 9,110 1,868 1,315 6,053
10/11/2015 25,743 10,689 18,511 19,224 11,971 14,259 7,863 16,325 11,030 6,948 8,766 1,835 1,284 5,950
11/11/2015 25,867 10,801 18,605 19,395 12,015 14,464 7,888 16,500 11,069 7,017 8,831 1,854 1,311 5,975
13/11/2015 25,611 10,653 18,306 19,362 12,039 14,179 7,770 16,346 10,923 7,064 8,783 1,848 1,294 5,894
-1.96% -2.01%
-
1.01% -0.35% 0.07%
-
1.85%
-
2.39%
-
2.41%
-
2.73% -1.16%
-
3.59%
-
1.08%
-
1.62%
-
2.63%
4. Commodities and Currency:
Date USD GBP EURO YEN
Crude
(Rs. per BBL)
Gold
(Rs. Per 10gms)
9/11/2015 66.47 100.47 71.52 53.96 2914 25800
10/11/2015 66.20 100.07 71.06 53.74 2910 25764
11/11/2015 66.07 100.50 71.12 53.79 2933 25743
12/11/2015 66.05 100.60 71.40 53.87 2770 25743
13/11/2015 66.05 100.63 71.13 53.86 2770 25743
0.64%
Rupee
Appreciated
-0.16%
Rupee
Depreciated
0.55%
Rupee
Appreciated
0.19%
Rupee
Appreciated
-4.94% -0.22%
Debt:
Tenor Gilt Yield in
% (Friday)
Change in
bps (Week)
1-Year 7.26 2
2-Year 7.38 -4
5-Year 7.71 1
10-Year 7.65 -4
5. Phani Sekhar Ponangi Jharna Agarwal
Nupur Gupta Aakash Mehta
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