Monthly Equities Market Wrap (Jul-14)
1
© Saurabh, Shared in investor’s interest Connecting the dots… 21 Buddha Monthly Market Wrap | Jul-14 Period Level 1 Mth 3 Mths YTD 1 Yr 3 Yrs (Ann) 5 Yrs (Ann) 10 Yrs (Ann) S&P BSE Sensex 25,894.97 1.89 15.51 22.32 33.85 12.48 10.57 17.48 S&P BSE 100 7,799.72 0.74 16.15 23.28 36.67 12.13 10.46 17.18 S&P BSE 200 3,144.77 0.65 16.99 24.27 38.48 11.70 10.49 16.65 S&P BSE 500 9,831.51 0.41 17.85 25.59 40.74 11.40 10.60 16.80 CNX Nifty 7,721.30 1.44 15.31 22.48 34.47 12.09 10.74 16.81 CNX Nifty Junior 16,285.70 -1.22 19.86 25.92 45.90 14.29 13.96 18.11 MSCI India 973.91 1.35 14.61 19.18 29.86 11.10 9.50 16.20 Gold 42,353.12 -1.76 -0.18 4.79 -2.64 2.11 10.54 14.71 7.7 7.4 4.2 1.6 0.1 -0.3 -3.5 -3.6 -8.0 -8.9 -9.6 Healthcare FMCG IT Auto Bankex Metal Consumer Durables Oil & Gas Power Realty Capital Goods 1 Mth Sector Returns - 50,000 1,00,000 1,50,000 2,00,000 Jun-14 Jul-14 FII Net Investment Tracker Equity Debt The rear view: FY 14-15 Budget, Q1 earnings season, El Nino impact, Argentina’s debt default, Russian sanctions, Gaza crisis & Iraq violence should have turned July into an action packed month for the Equities market. Yet these factors had a muted impact on the streets. Though the Modi euphoria also took a moderate pause this time and the broader market performance was restricted to 1.89 % on MoM basis. This should rather be construed as a healthy sign for the fundamental community as the market has now begun to pay at least some attention to ground zero events like Corporate India’s business performance, macroeconomic situation and various global concerns. Since last several months India has been receiving the lion’s share of EM allocation by FIIs. Last month the net inflows registered new highs at INR 1.59 lakh crore. We expect this trend to continue for another couple of months. The recently introduced tax exemptions in Equity related Mutual funds coupled with an upward revision in India’s sovereign ratings could make domestic equities one of the most chased asset class for some more time. Sensex PE is already trading close to its 10 years LT average. New investors entering the market at this juncture should act cautiously although there is still plenty of value untapped in specific sectors and stocks. All eyes are set for RBI’s monetary policy review today. With inflationary trends easing, many market experts are expecting Raghuram Rajan to oblige this time with rate cuts. Currency v/s INR Level MoM Change (%) USD 60.87 1.33 GBP 102.80 0.04 EUR 81.50 -0.90 9.08 25.80 18.61 8 12 16 20 24 04 05 06 07 08 09 10 11 12 13 Sensex PE Ratio 10 Yrs LT Avg: 17.88X Source: Bloomberg, BSE India & NSDL Note: All data as of 31-Jul-2014 and all indices are INR denominated. Figures in INR Cr.
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This one page snapshot captures monthly market recap in the Indian equities space.
Transcript of Monthly Equities Market Wrap (Jul-14)
© Saurabh, Shared in investor’s interest
Connecting the dots…
21 Buddha Monthly Market Wrap | Jul-14
Period Level 1 Mth 3 Mths YTD 1 Yr 3 Yrs (Ann) 5 Yrs (Ann) 10 Yrs (Ann)
S&P BSE Sensex 25,894.97 1.89 15.51 22.32 33.85 12.48 10.57 17.48
S&P BSE 100 7,799.72 0.74 16.15 23.28 36.67 12.13 10.46 17.18
S&P BSE 200 3,144.77 0.65 16.99 24.27 38.48 11.70 10.49 16.65
S&P BSE 500 9,831.51 0.41 17.85 25.59 40.74 11.40 10.60 16.80
CNX Nifty 7,721.30 1.44 15.31 22.48 34.47 12.09 10.74 16.81
CNX Nifty Junior 16,285.70 -1.22 19.86 25.92 45.90 14.29 13.96 18.11
MSCI India 973.91 1.35 14.61 19.18 29.86 11.10 9.50 16.20
Gold 42,353.12 -1.76 -0.18 4.79 -2.64 2.11 10.54 14.71
7.7 7.4
4.2
1.6
0.1
-0.3
-3.5 -3.6
-8.0 -8.9
-9.6
Healthca
re
FM
CG
IT
Auto
Bankex
Meta
l
Consu
mer
Dura
ble
s
Oil
& G
as
Pow
er
Realty
Capital G
oods
1 Mth Sector Returns
-
50,000
1,00,000
1,50,000
2,00,000
Jun-14 Jul-14
FII Net Investment Tracker
Equity Debt
The rear view: FY 14-15 Budget, Q1 earnings season, El Nino impact, Argentina’s debt default, Russian sanctions, Gaza crisis & Iraq violence should have turned July into an action packed month for the Equities market. Yet these factors had a muted impact on the streets. Though the Modi euphoria also took a moderate pause this time and the broader market performance was restricted to 1.89 % on MoM basis. This should rather be construed as a healthy sign for the fundamental community as the market has now begun to pay at least some attention to ground zero events like Corporate India’s business performance, macroeconomic situation and various global concerns. Since last several months India has been receiving the lion’s share of EM allocation by FIIs. Last month the net inflows registered new highs at INR 1.59 lakh crore. We expect this trend to continue for another couple of months. The recently introduced tax exemptions in Equity related Mutual funds coupled with an upward revision in India’s sovereign ratings could make domestic equities one of the most chased asset class for some more time. Sensex PE is already trading close to its 10 years LT average. New investors entering the market at this juncture should act cautiously although there is still plenty of value untapped in specific sectors and stocks. All eyes are set for RBI’s monetary policy review today. With inflationary trends easing, many market experts are expecting Raghuram Rajan to oblige this time with rate cuts.
Currency
v/s INR Level MoM Change (%)
USD 60.87 1.33
GBP 102.80 0.04
EUR 81.50 -0.90
9.08
25.80
18.61
8
12
16
20
24
04 05 06 07 08 09 10 11 12 13
Sensex PE Ratio
10 Yrs LT Avg: 17.88X
Source: Bloomberg, BSE India & NSDL Note: All data as of 31-Jul-2014 and all indices are INR denominated.
Figures in INR Cr.
