Global brokerage house Morgan Stanley is bullish on top private-sector lenders ICICI Bank and HDFC Bank. In fact, both are its top picks in the space, though its base case is for a fairly weak financial sector in 2020.The research house feels loan growth will be slow and non-performing loans (NPL) formation will be elevated. "Banks and NBFCs will struggle to improve balance sheet and profitability," it said.It is underweight on Yes Bank, RBL Bank, IDFC First Bank, Federal Bank and state-owned banks (Ex-SBI) and among non-banks, it is underweight on Indiabulls Housing Finance and PNB Housing Finance.Close Morgan Stanley does expect ICICI Bank to return 48 percent (at Rs 775 per share) in next one or two years, as large lenders are at the start of a super-normal profit cycle. related news RSI pullback in SBI suggests buying opportunity No ‘intermediate top’ but traders could go short on Nifty this week: Experts Top buy and sell ideas by Ashwani … [Read more...] about Morgan Stanley bullish on ICICI Bank, Grasim among 5 stocks
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General investors cannot time the markets and we hence suggest looking at the markets from a long-term investment horizon and investing in a staggered manner, Pankaj Bobade, Head of Fundamental Research, Axis Securities tells Moneycontrol's Kshitij Anand in an interview.Q. What is your assessment of the September quarter earnings season? If you had to describe it in one word –what would that be? And, what were the highlights?A. The Q2FY20 results season has been a ‘mixed bag’. Given the slowdown in economic growth, one should see the results season sector by sector.The volumes in the FMCG sector were slightly better than expected especially on the back of the high base and the pain in the rural segment.Discretionary consumption plays were a mixed bag with paints and quick service restaurants (QSR) segment reporting better than expected growth. Though the near-term consumer demand is likely to be subdued, improving monsoon offers a ray of hope to invigorate demand … [Read more...] about Smart money | Chase stocks that show growth irrespective of long, mid or small-caps
Global brokerage house Jefferies has double weight on India, but given the low weightage, Chris Wood, Global Head of Equity Strategy, said he should be triple overweight on the country.The research house disclosed its Asia (ex-Japan) long-only thematic equity portfolio in its December report; wherein, it has 46 percent weightage to only Indian companies under various themes.Out of which, it has 31 percent weightage to India's BFSI sector (banking, financial services and insurance) and of that, banking sector's (only private and not public) weightage stood at 15 percent.Close HDFC Bank, ICICI Bank and Axis Bank, India's three largest private-sector lenders."In Jefferies long term portfolio (ex-Asia Japan), the constant area of exposure has been Indian private sector banks. The private sector bank index performed well," Christopher Wood, Global Head of Equity Strategy at global investment banking firm Jefferies Group said in an interview to CNBC-TV18. related news … [Read more...] about RIL, HDFC Bank among 10 stocks that dominate Jefferies’ long-only thematic equity portfolio
Abraham C MathewsIn 1988, the then Democratic Party’s candidate for American President, Michael Dukakis, a staunch opponent of death penalty, had a major on-screen gaffe. During the presidential debates, he was asked whether he would still support the death penalty if it was his wife who was raped and murdered. He replied in the negative. That answer is widely considered to have cost him the election, which was won by his opponent George HW Bush, as Dukakis came across as a weak and faint-hearted liberal.Eight years later, Bill Clinton, when asked the same question took no chances. He affirmed his support for the death penalty. Politicians in India too have been largely wary of publicly standing up for ‘due process’ in cases that shock our conscience, and for good reason that it an invitation to immediate public anger. However that is all the more reason why we must ask whether ‘revenge’, that is, ‘an eye for an eye’, has any place in civilised … [Read more...] about Society | The answer to barbaric crimes is not more barbarism
From opening a bank account or buying an insurance policy to fighting cancer or even buying a pair of shoes, we are increasingly being helped or influenced by artificial intelligence (AI). In Mumbai, designers Falguni and Shane Peacock used AI to create their latest collection. In Bengaluru, a startup is using AI to improve detection of breast cancer and also make treatment cheaper. And in the Tata Motors plant in Pune, a robot is skilled enough to do 30 different tasks — that's artificial intelligence again.The world around is changing much faster than we can imagine, and this six-part series goes behind the scenes to understand how. Part I dealt with AI's impact on the auto sector, Part II on insurance segment, while Part III dealt with medical diagnostics. Today, we look at how artificial intelligence could be a threat to independent financial advisors.Robo-advisers are nothing but financial planning through artificial intelligence. … [Read more...] about AI disruption: Is robo-advisory a threat to financial planners?