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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The Gambler’s Fallacy

Aug 1, 2016

6:01 am

Summary The Gambler’s Fallacy has implications for Indian equities and bonds. India is a clear consensus favourite today. We look at valuations and the best strategy forward. The Gambler’s Fallacy… In the summer of 1913, crowds at a roulette table in Monte Carlo witnessed an incredible event. The ball had landed on black 15 times…

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