Kotak Institutional Equities turned bearish on global auto ancillaries Motherson Sumi, Balkrishna Industries and Bharat Forge citing subdued volumes in coming years."These stocks are trading at 19-25X FY2021E EPS estimates, which in our view is very expensive due to (1) cautious forward guidance by most of the global original equipment manufacturers (OEMs) and (2) valuation of global peers is at significant discounts compared to Indian counterparts," said the brokerage.After reading commentaries by global OEMs and auto component players, the research house feels global auto volumes are likely to remain subdued till CY2021 and most players are focused on cost-reduction efforts due to pressure on profitability.Close Kotak sees risks to Indian component suppliers' earnings (Motherson, BHFC, Balkrishna and Varroc Engineering) as they are linked to global auto OEM demand. related news Brokerages bullish on ICICI Bank, see 20% further upside despite rallying 44% in … [Read more...] about Kotak turns bearish on these 2 auto ancillaries, expects over 17% fall
Concerns in global health
During harsh Chicago winters when he was homeless, Glenn Baker used to spend as many as 20 nights each month in local emergency rooms–both because of his chronic medical conditions and, at times, just to get out of the cold. But for the last year and a half, Baker has lived in his own apartment, paid for in part by the University of Illinois Hospital. His health has improved, and when he visits the hospital now, it’s usually just to say hello. advertisement advertisement In a pilot program, the hospital partnered with the nonprofit Center for Housing and Health to provide supportive housing for 26 ER “super users” like Baker beginning in 2015. After seeing the program’s success–on average, healthcare costs per patient dropped 18% each month–the hospital now plans to pay to house 25 more people. It is also working with other hospitals to help them make the same investment. “We think a combination of things makes a very compelling … [Read more...] about Why Hospitals Are Subsidizing Apartments For The Homeless
The equity benchmark Sensex scaled a new all-time high of 40,816.38 in the morning trade on November 20. Not just the Sensex, even the Nifty has been rallying at a time when concerns over the Indian economy are growing, with macroeconomic data pointing to a slowdown.Why is the market behaving differently from the economy?"Markets usually run ahead of macros and price future growth. There are three positive indicators for growth – reduction in the corporate tax rate, proposed divestment of large public sector units and a possible resolution of the US-China trade impasse. Therefore, we see growth coming back in 2020. Now, we expect broader markets to outperform," said Sanjiv Bhasin, Director, IIFL Securities.Close Experts and brokerages are of the view that the market is factoring in a recovery in the economy. related news The role of P/E multiple in deciding investment returns Sensex hits a new high, 4 factors that could be fuelling optimism Hot Stocks: Short-term trend … [Read more...] about Economy in stress and markets on a high; time to be careful?
Mutual fund schemes witnessed a steady inflow in August even as the broader market sentiment remained sombre amid concerns over the macro-environment and earnings revival.Total assets under management (AUM) of the mutual fund industry increased by 3.8 percent month-on-month (MoM) to Rs25,50,000 crore, mainly led by inflows in liquid and equity-oriented schemes.Inflows in equity schemes, including ELSS and arbitrage, went up from Rs 14,000 crore in July to Rs 15,100 crore in August, the highest since February 2018, led by a decline in redemptions (down 26 percent MoM at Rs 12,000 crore), even as gross sales were down 10 percent MoM to Rs 27,100 crore, said a recent report from Motilal Oswal FinancialServices.Close Highest net buying on MoM basis was witnessed in Eicher Motors, followed by Yes Bank, Adani Ports, UltraTech Cement and Reliance Industries, in that order. related news Brokerages bullish on ICICI Bank, see 20% further upside despite rallying 44% in last 9 months … [Read more...] about Top 17 Nifty stocks in which MF schemes have over 2% exposure; should you buy?
The Indian market created history in the morning trade on November 20 as the BSE Sensex rallied more than 300 points to hit a fresh record high of 40,816. The Nifty50 broke above its crucial resistance level of 12,000 and was aiming to surpass its record high of 12,103.Sectors such as telecom, energy, oil & gas rose more than 1 percent, while mild selling was seen in consumer durables, power, and realty index.A list of factors that could be fuelling the rally in markets:Close RIL leads the charge related news The role of P/E multiple in deciding investment returns Brokerages bullish on ICICI Bank, see 20% further upside despite rallying 44% in last 9 months Reliance Industries (RIL), which is now inching towards a market capitalisation of Rs 10 lakh crore, the highest among the listed companies on the BSE, is the top contributor to Sensex gains.Reliance Industries share price touched a record high of Rs 1,571, rising more than 4 percent in early trade after … [Read more...] about Sensex hits a new high, 4 factors that could be fuelling optimism