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Global Turmoil & High Valuations

Sep 12, 2016

11:37 am

Summary A resurfacing of global risks and high domestic valuations are driving the recent market correction. We provide data that support the thesis that the Indian consumer remains strong, and the economic recovery remains in place. We discuss strategies for investors in the current scenario.   Valuation Markets broke 24.5 times on the trailing P/E…

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Earnings Scorecard

Aug 29, 2016

1:52 pm

“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.” – Peter Lynch Summary Equities With 43 companies in the Nifty 50 having reported earnings so far this quarter, 56% of companies have reported a positive surprise versus their expected numbers, while…

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Effectiveness of a High P/E Valuation Strategy

Aug 16, 2016

11:47 am

Summary With the Nifty 50 trading at stretched valuations, it’s instructive to look back and analyse the effectiveness of a high P/E based strategy.   Equities The Nifty 50 is at a trailing P/E multiple of 23.7 times earnings. The chart at the bottom of this page highlights prior periods that the index traded at…

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Update on monetary policy, the economy and the new monetary policy framework

Aug 9, 2016

11:17 am

The RBI kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.5% today, maintaining an accommodative stance while awaiting developments. The RBI stated it will continue to provide liquidity as required but progressively lower the liquidity deficit in the system to a position closer to neutrality. The RBI continues to believe…

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