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
Current global recession
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 first thing you notice about Jeff Bezos is how he strides into a room. advertisement advertisement A surprisingly diminutive figure, clad in blue jeans and a blue pinstripe button-down, Bezos flings open the door with an audible whoosh and instantly commands the space with his explosive voice, boisterous manner, and a look of total confidence. “How are you?” he booms, in a way that makes it sound like both a question and a high-decibel announcement. Each of the dozen buildings on Amazon’s Seattle campus is named for a milestone in the company’s history–Wainwright, for instance, honors its first customer. Bezos and I meet in a six-floor structure known as Day One North. The name means far more than the fact that Amazon, like every company in the universe, opened on a certain date (in this case, it’s July 16, 1995). No, Day One is a central motivating idea for Bezos, who has been reminding the public since his first letter to shareholders … [Read more...] about AmazonFresh Is Jeff Bezos’ Last Mile Quest For Total Retail Domination
Natural gas is often called the bridge fuel to a cleaner energy future, a premise that enabled the natural gas boom in the U.S. over the last decade, specifically a boom in controversial drilling process called fracking. advertisement advertisement That fracked natural gas improved the United States is undeniable. Putting aside the effect on local water supplies (which may be considerable) the economic impact has been tremendous. The boom has allowed the U.S. to have cheap energy and reduce its carbon emissions, which is an excellent combination. It’s time we accepted this, because the main alternative is much worse: coal. Coal is enemy number one. Compared to that, natural gas–even fracked natural gas–is better. Having said that, there are reasons to doubt fracked gas is the way forward long-term, both for the U.S. and the world in general. Although natural gas is often cited as a bridge fuel, the question is whether it continues to be a net positive, … [Read more...] about If Natural Gas Is A Bridge To A Clean Energy Future, It’s A Short, Uncertain Bridge
Investors are showing interest in Asia in the face of the US-China trade war and the first quarter of 2020 should be “constructive” as the bulk of problems related to growth are behind us, Morgan Stanley India Managing Director Ridham Desai has told CNBC-TV18.The Sensex hit a record high of 40,816.38 during the morning trade on November 20, while the Nifty flirted with 12,000-mark. The markets have been doing well in contrast to a slowing economy."The market is generally a forward-looking animal. Hence some growth going ahead is already priced in," he said after a Morgan Stanley conference in Singapore.Close The market has dealt with a lot of news in the last year or so and things were looking up. Global growth, too, is getting back on track while in India, Desai believes, margins have started expanding, though revenue growth is definitely sluggish.Ridham DesaiMD & Head of India Research|Morgan Stanley 'Expect these 4 more reforms, Sensex at 45,000 by June 2020 and … [Read more...] about FIIs bullish on India, growth should start accelerating in Q2CY20, says Ridham Desai