27
Nov
Posted by smcinvestmentindia in Asset management, Banking, Bonds, Brokerage, budget, Business, Capital Market, capitals, commodity, Commodity market, Commodity Trading, Company, currency, Distribution of Mutual Funds & IPOs, Economics, Equity & Derivative Trading, Finance, financial planning, futures, General, Import Export, india, India corporate world, Insurance, interest rates, International, Investment, IPO, Mutual Funds, Private Equity, QIP, securities, share market, smc capitals, SMC Depository, SMC Global, SMC online trading, SMC Research Based Advisory Services, Stock, tax, telecom, Trading, Wealth. Tagged: Abu Dhabi, Asia, banking and realty stocks, Bombay Stock Exchange, Brokers, Credit-default swaps, debt, Dollar, Dubai, Dubai's debt, economic crisis, Europe, European indices, expats, financial shocks, global downturn, global financial system, India’s exports, Indian rupee, Indian shares, Investment, MSCI Emerging Markets Index, National Stock Exchange index, Nifty, remittances, Rupee, Sao Paulo, Sensex, Shanghai Composite Index, Sydney, UAE, United Arab Emirates. 2 comments
Just a year after the global downturn derailed Dubai’s explosive growth, the city is now so swamped in debt that it’s asking for a six-month reprieve on paying its bills.
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Dubai Debt Fears Grip World Markets
This has cast a shadow on a world only just emerging from the worst economic crisis since the 1930s, knocking markets from Sydney to Sao Paulo and raising questions about Dubai’s reputation as a magnet for international investment.
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For India, which has tens of thousands of its citizens living and working in the emirate, the concerns are more direct: thousands of its expats staring at job losses and the economy, sharply reduced trade.
India, which gets nearly a quarter of the remittances from the United Arab Emirates and has lakhs of laborers working in the region, could be worse off than most other nations if the crisis escalates into a full-blown one like the Russian or Argentinean crises of the past.🙂
India’s exports to the UAE stood at $23.92 billion in FY09.
It is very likely that we may see one more leg of job losses in Dubai.
The only consolation for the region is that Abu Dhabi is booming.
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Indian shares and the rupee fell in sync with other global markets where investors are fleeing for safety after Dubai debt trap concerns.
The Bombay Stock Exchange benchmark Sensex on Friday tumbled over 451.63 points to 16,403.30 points in the first ten minutes of trading on hectic selling by funds in line with weak global cues and concerns over Dubai’s debt.
Similarly, the wide-based National Stock Exchange index Nifty dropped by 140.50 points to 4865.05 points.
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Brokers said the selling focus was more on banking and realty stocks after Dubai’s debt problems revived concerns about the global financial system and rattled markets across Europe and Asia.
Indian rupee fell 24 paisa to 46.55 against the dollar. The MSCI Emerging Markets Index lost 1.4%.
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Most European indices were about 2% lower after Asia tumbled.
The Shanghai Composite Index slumped 3.6%, its biggest drop since August, and Brazil’s Bovespa Index slipped 1.1%. U.S. markets were closed for the Thanksgiving holiday.
Credit-default swaps tied to debt sold by Dubai rose as much as 131 basis points to 571.
“Dubai isn’t doing risk appetite any favours at all and the markets remain in a vulnerable state of mind,” said Market analysts.
“We’re still in an environment where we’re vulnerable to financial shocks of any sort and this is one of those.”
🙂
11
Sep
Posted by smcinvestmentindia in agriculture, Asset management, Automobiles, Banking, Brokerage, budget, Business, Capital Market, capitals, Clearing Services, Commodity market, Commodity Trading, Company, Distribution of Mutual Funds & IPOs, Economics, Enviroment, Equity & Derivative Trading, Finance, financial planning, General, india, India corporate world, Insurance, Investment, IPO, Merchant Banking, Private Equity, securities, SMC Depository, SMC Research Based Advisory Services, tax, Trading, Wealth. Tagged: Accelerating production, agricultural output, agricultural sector, agro commodities, Australian economy, base year, bottom-line growth, broader tax base, Capital flows to India, cereals, China, China's Shanghai Composite Index, commerce ministry, Company, confidence of investors, consumption, control the deficit, current quarter GDP, deficit, demand, disinvestment, earnings, economic growth, Economy, employment-oriented sector, engineering sector, equity investments, European economies, export, FII portfolio inflows, fiscal deficit, fisheries, food prices, foreign investment, foreign trade policy, France, fundamentally good stocks, FY10, GDP, Germany, Global markets, global recession, GOI, good stocks, government spending, government spending in rural areas, horticulture, huge cost cutting, incremental tax revenues, India growth story, India's exports, India's industrial production, India's Sensitive Inde, India's Sensitive Index, Indian agriculture, Indian Export Organisations, industrial production, inflationary pressures, interest rates, Investment, investor, investors, inward FDI flows, kharif crops, last two quarters of 2008-09, livestock, long run, lower base year, lower costs of raw material, lower interest rates, lowering the subsidy, manufacturing and housing sectors, Markets, mature markets, Measures for fiscal deficit, medium-term growth, ministry of petroleum, monsoon rains, MSCI Asia Pacific Index, net capital outflows, new tax code, NRI deposits, oil subsidy, oilseeds, positive Q1FY10 result, Positive Undertones in the Economy - Part 1, positive undertones in the markets, power plants, private spending, profit from other sources, pulses, Q1FY10, Q2FY10 numbers, quarter's results, Reality sector, residential property buyers, revenue driven, roads, rural areas, savings rate, Sensex, sentiments of investors, service providers like banking, Shanghai Composite Index, stake sale, stimulus, stimulus package, stock market, stock market trading, subsidy, subsidy burden in Kerosene and LPG., tax compliance, tax laws, Textiles and Gem Jewellery, Top line growth, total output of the agricultural sector, Unique Identification Project, yield of kharif crop. Leave a comment
Extending to the yesterday’s post on the positive undertones of the economy in the markets and investors tips, here we coming up with the more factors which investors should use for picking up fundamentally good stocks.
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1. Reality companies hike rates by 15%
Reality sector is witnessing a substantial demand, especially in the mature markets, after the prices dropped a few months ago.
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With the gradual return of residential property buyers, prices in NCR and Mumbai areas have moved up 10-15%.
How long these prices will sustain is hard to determine, but this indicates the confidence of investors.
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2. India..in Better Position
India can be considered as “balanced” in terms of investment and consumption with savings rate of 35% and consumption of 65% of its GDP.
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The fastest growing China leans towards investment, whereas most of the western countries are weighted more towards consumption.
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If we compare India’s Sensitive Index with its other Asian peers, Sensex is valued at 17.6 times estimated earnings where as China’s Shanghai Composite Index trades at 22 times earnings and the MSCI Asia Pacific Index is valued at 24 times.
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So, India remains very attractive and it is an opportune time for Indian companies to grab market share.
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3. Developments in the rest of the economy 🙂
If we see the positive economic numbers across the globe, it seems that world economy is moving towards recovery.
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Australian economy surprised with a jump in growth in the second quarter.
US have witnessed a growth in the current quarter GDP, US manufacturing and housing sectors appears to be gathering pace, quarter’s results came better than expected.
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European economies like France and Germany continued their gradual emergence from the worst crisis in decades and company results showed an upturn.
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4. Concerns Over Weak Monsoon!
Everyone is expecting that poor rains would push up food prices in the short-term, due to the reduced yield of kharif crop and it would add to inflationary pressures.
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But at the same time, we should also know that Indian agriculture is not limited to agro commodities only, but it is well diversified into horticulture, livestock and fisheries and their share in total output of the agricultural sector is increasing.
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Total agricultural output accounts for only 18.5 % of the gross domestic product and the kharif crops like cereals, pulses and oilseeds account for only 20% of it.
Moreover, government spending in rural areas will mitigate the effect of diminished monsoon rains.
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So, Looking at the above factors, India growth story remains strong in the long run.
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So, one can go for the companies, which will benefit from “Economic growth” like power plants, roads, service providers like banking and engineering sector.
Thanks 🙂
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