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from Expert Zone:
India Markets Weekahead – Company results key for market direction
(Any opinions expressed here are those of the author, and not necessarily of Thomson Reuters)
Infosys stumped Indian markets again but for a change -- positively. Recent management comments had built expectations of underperformance which led to cautious to negative views on the stock. Institutional investors were light on Infosys whereas the more adventurous speculators were short. And we were all caught on the wrong foot when the company declared a revenue growth as well as a net profit much better than consensus expectations.
The question is whether one should buy Infosys after this 17 percent surge? I would continue to be cautious as I believe the knee-jerk reaction is overdone. Does a better performance put Infosys back in line with the guidance given at the beginning of the year? Not really. Could this be a one-quarter wonder? It’s possible and I would await another quarter for confirmation.
The consensus on the street was that markets could be heading for new highs soon and this possibly was the biggest risk they have been facing in the short term. If not for Infosys, the markets may have broken important support levels on Friday. Unlike the underlying confidence in the past few weeks, the markets have displayed weakness in the last few days closing about a percent lower at 5952.
from Expert Zone:
India Markets Weekahead – Set for new high with no roadblock in sight
A resolution for the U.S. "fiscal cliff" helped the markets cross the psychological Nifty benchmark of 6,000 to close the week up 1.82 percent at 6,016.
Though I expected a spirited rally, what we witnessed last week is a strong consolidation around 6,000 which could form a solid bottom for the next leg of the rally. This is also facilitating the entry of domestic retail investors which is visible in the mid-cap and small-cap volume and performance. The BSE small-cap index moved up 3.71 percent whereas the BSE mid-cap index gained 3.13 percent.
from Expert Zone:
India Markets in 2013: ball is in government’s court
(The views expressed in this column are the author’s own and do not represent those of Reuters)
If calendar year 2012 was the year of scams in India which helped induce some much needed government reforms, the year 2013 is expected to be a year of hope and expectation for India and India Inc. There are expectations on better political governance, fall in inflation levels and hence interest rates, creation of an investment friendly business environment and lots more. It’s also the year with the last finance budget before the 2014 general elections.
from Expert Zone:
India Markets Weekahead – A breakout expected before the year ends
(The views expressed in this column are the author’s own and do not represent those of Reuters)
Markets struggled to hold beyond Nifty levels of 5900 and closed the week 0.47 percent down, breaking a three-week streak of gains. Uncertainty over the banking regulations bill seems to have overshadowed better-than-expected wholesale price index-based inflation data in November. Industrial production soared by 8.2 percent, surprising analysts and sending signals that green shoots of economic recovery are visible.
from Global Investing:
America Inc. share of GDP – 12 or 3 pct?
Wall Street has been doing pretty well in recent years. Just how well is illustrated by the steady rise in corporate profits as a share of the national economy. Look at the following graphic:
Of it, HSBC writes:
The profits share of GDP in the United States must rank as one of the most chilling charts in finance.
from Global Investing:
Discovering the pleasure of dividends in Russia
American financier J.D. Rockefeller said watching dividends rolling in was the only thing that gave him pleasure. But it is a pleasure which until now has largely bypassed shareholders in most big Russian companies. That might be about to change.
Russian firms, especially the big commodity producers, are generally seen as poor dividend payers. So dividend yields, the ratio of dividends to the share price, have been unattractive.
from Global Investing:
How socially responsible is your investing?
Is your investment ethically sound and socially responsible?
A new survey by consulting firm Mercer finds that only 9% of more than 5,000 investment strategies achieve the highest environmental, social and governance (ESG) ratings.
Socially responsible investing (SRI) involves buying shares in companies that manage ESG risks. For example, firms that make clean technologies are favoured, while businesses which pollute the environment, are complicit in human rights abuses or nuclear arms production are shunned. All this sounds good, but the performance of such investments has been somewhat mixed -- meaning being good doesn't always mean doing well. But the SRI industry is hoping that greater involvement of funds, especially long-term ones such as pension funds and sovereign wealth funds -- may generate flows into the sector and lead to better performance.
from Money on the markets:
LIVE BLOG: Sensex, Nifty plunge to 2011 lows
The BSE Sensex and Nifty plunged to fresh 2011 lows in Wednesday trade, a day before the expiry of derivatives contracts, amid renewed worries about faltering global growth.
from MacroScope:
New twist in Hungary’s Swiss debt saga. Banks beware.
A fresh twist in Hungary's Swiss franc debt saga. The ruling party, Fidesz, is proposing to offer mortgage holders the opportunity to repay their franc-denominated loans in one fell swoop at an exchange rate to be fixed well below the market rate. This is a deviation from the existing plan, agreed in June, which allows households to repay mortgage installments at a fixed rate of 180 forints per Swiss franc (well below the current 230 rate). Households would repay the difference, with interest, after 2015.
If this step is implemented and many loan holders take up the offer, it would be terrible news for Hungary's banks. The biggest local lender OTP could face a loss of $2 billion forints, analysts at Budapest-based brokerage Equilor calculate. Not surprisingly, OTP shares plunged 10 percent on Friday after the news, forcing regulators to suspend trade in the stock. Shares in another bank FHB are down 8 percent.
from Money on the markets:
Good day for RIL shares
Shares in Reliance Industries, India's top listed firm, gained 4 percent on Friday, helping the benchmark Sensex post gains of more than 250 points.
RIL, which has the highest weight in the Sensex, ended with volumes of 944,021 on BSE.
