4/16/2023 0 Comments Moneycontrol indian stock market![]() ![]() advises users to check with certified experts before taking any investment decisions. The NSE-All Share increased 7120 points or 16.67 since the beginning of 2022, according to trading on a contract for difference (CFD) that tracks this benchmark index from Nigeria.The Nigerian Stock Exchange NSE Index is a major stock market index which tracks the performance of all stocks listed on the Nigerian Stock Exchange. Disclaimer: The views and investment tips expressed by investment experts on are their own and not those of the website or its management. ![]() Given the lofty valuations of Indian stocks and emerging threats to the idea of de-coupling from global markets, investors are bound to suffer from some vertigo. “In our view, the RBI may have to raise policy rates beyond levels warranted by domestic inflation alone, given balance of payments or currency challenges,” Kotak Equities said in a recent note. The US Fed’s reiteration of raising interest rates aggressively to cool down multi-decade high inflation, believes Kotak Equities, will dash Indian market’s hopes of a de-coupling from the turmoil in global markets. In previous instances of such a wide difference between Indian bond and earnings yield, the stock market tends to give muted returns over the next 12 months, Kunal Vora, head of research at BNP Paribas, said.ĬLSA fears that a return to historical average difference of 100 basis points between the government bond yield and earnings yield of Nifty 50 will push the benchmark stock index’s valuation multiple to 13 times one-year forward earnings from 18.3 times currently.īesides the mean reversion in bond market and equity market valuations, Kotak Institutional Equities fears there is also a risk of investors being caught on the wrong foot in their benign expectations around interest rate hikes by the RBI. Mone圜 is India s leading financial information source. The difference between the government bond yield and the current earnings yield of Nifty 50 companies is more than 200 basis points indicating relative attractiveness of bonds over equities. Unlocking opportunities in Metal and MiningĬLSA believes that the bond market is eventually likely to revert to the five-year average spread of 4.7 percent to the US Treasury bond yield going ahead, which will peg the 10-year local government bond yield at 8.75 percent assuming that US bond yields stay at four percent.Īlso Read: Dollar liquidity crisis simmers, but headwinds may not ruffle Indian economyīrokerage house BNP Paribas recently also highlighted that the widening gap between the earnings yield of Nifty 50 and that of the 10-year government bond is also portending negative equity returns going ahead.Interview Series Business In The Week Ahead.
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