BoFA-Merrill SENSEX Target Swings Widely – 16,000 to 20,500

Bofa-Merrill Sensex Target 2014BofA Merrill was the one of the first Research House which said that the SENSEX Earnings will be tapered to as low as Rs 1260 for FY 2014. Bofa Merrill’s estimates were in as early as April so that left ample time for investors like us sitting with 90% investments in Equities to Book Profits in the Rally but unfortunately we didn’t.

In the aftermath of the Massive Appreciation of USD against Indian Rupee and Decade Low GDP Growth Citi Analysts Questioned the Rationale behind India Quoting at 14 P/E on forward earnings when Bank’s Asset Quality is questionable as the Government (more…)

Indian Equity Valuations to Contract Reflecting Lower GDP Growth – Sensex Target

Citigroup Equity Analysts were the first to come out and boldly question Why Indian Equities which are already overvalued compared to Emerging Economies must Trade at a higher P/E of 14 when the Policy Paralyzed and Lip Service Government is delivering the Worst GDP Growth of Decade ?

Today, JP Morgan Analysts have seconded Citi Opinion in a research report released just a while ago. Their valuation model suggests that there could be downside of another 5-7% (more…)

47 Year [1973-2020] Historical USD to INR Exchange Rate Data & Chart

Breaking News - ExclusiveThe Indian Finance Minister Mr. P.Chidambaram came this evening with a “communique” that he thinks the Government must have done [In reality for how long & for how many quarters the Government wants to do Lip Service ?]. Mr Swamy Iyer, Editor at the Economic Times ripped P. Chidambaram apart and raised few questions of which I remember the important ones – Why is the GDP Growth on Downtrend? It has been 12 months for FM in office why the so called Project Clearances have not transformed into Orders and the industry not working on the same ?

In this backdrop, Mr. Iyer told (more…)

Indian Economy Back to 1995-2003 Years + Thank Congress & Manmohan Singh

FII Mover & Shaker of Indian Market, Citigroup Equity Research has set the undertone of to be Bearish on India. Citi says that India has gone back to its old normal (FY95-03): lower growth, higher uncertainty and yes, lower market multiples

The macro-economic levels: be it its fiscal deficit, which it reduced from 6%+ to under 3% over the 2003-08 period; inflation – which it sustainably reduced to sub 5% in the 2001-03 period; and its currency, which appreciated almost 25% (Rs49 to sub Rs40) over 2001-07. These no doubt (more…)

FIIs Exit + Is Market OverSold ? Can One BUY Now ?

The market had its 3rd largest 1 day fall in 4 years falling 4% as the Government is Severely Paralyzed. Is the Indian Market Oversold ? Technical indicators including RSI, 200 DMA are getting close to but are not yet at over-sold levels. Fund manager survey indicate sentiment on India is at a lower end of last 12 month trend but not yet at extreme bearishness levels.

The single biggest factor making investors nervous on India is the currency [Well, impossible to stabilize if FII Withdraw at the rate they have done in June & July $10 Bn or Rs 60,000 Cr from Debt & Equity]. A stabilization of the currency would make us as well as investors more positive (more…)

How RBI & Finance Ministry Killed the Indian Rupee ?

The Indian Rupee Continues to Make New Low [Rs 64 in Todays Trade] against the US Dollar as the Finance Minister and his Cabinet Colleagues Continue to Govern Arrogantly without accepting the fact that they have performed the Worst. Foreign investors withdrew over $8 Bn in the Last Two Months as the Thugs of the Indian Government do not seem to understand the Economic Situation and are sticking to only one point Agenda of Social Spending[ Food Security, Rs 1 / Kg Rice etc] to Get Votes in the forthcoming elections.

Here are the moves by the Government that Led to the Collapse of the Indian Rupee and they are now shamelessly headed towards IMF for a Bailout Package. (more…)