India poised to be third largest global economy by 2030 but rising population presents mounting challenges: S&P Report
In its report titled ‘Look forward emerging Markets: A decisive decade’, S&P said emerging markets will play a crucial role in shaping the global economy over the next decade, averaging 4.06 percent GDP growth through 2035, compared to 1.59 percent for advanced economies. Key Points
Business TodayGlobal financial architecture needs to be altered to meet the fund requirements of emerging economies, say
The global financial architecture should permit resources to flow from developed economies to emerging markets, according to G20 Sherpa Amitabh Kant. Speaking at the Green and Sustainable Growth conference, Kant said there is an estimated requirement of $5-6 trillion of funds if one looks at both the advanced economies and emerging markets and their requirements for achieving the Sustainable Development Goals and of climate action. Key Points
Economic TimesBlackRock says emerging markets have an edge over rest of world
BlackRock Inc.’s research arm is growing even more bullish on emerging markets, where central bankers are moving far faster than the Federal Reserve to reach a peak in their interest rate hiking cycles. Key Points
mintemerging markets set for February decline as rate hike fears dampen mood
A rally in EM stocks at the beginning of 2023 has petered out in recent weeks after signs of strength in the U.S economy fueled fears of aggressive rate hikes by the Federal Reserve and geopolitical risks including heightened U.S.-China tensions also weighed on sentiment. Key Points
India TodayNifty Financial Services index stocks: Will they lead the correction once again?
For all those, who are surprised the fact that all of sudden bank nifty or finnifty witnessed a sharp fall, it would worth remembering that whether it is upward or southward movement of Nifty and Sensex, it is largely led by financial services because of high ownership of institutional investor’s both domestic and foreign portfolio investors. So if there a sell of due to risk off mode for emerging markets, which market has moved to in last few days. It is financials which are likely to lead to the decline, but, there is equal sharp recovery in them. So, be careful both in buying and selling decision in financial space. Key Points
Economic Times
Indian equities to receive net $1.5 billion inflow with latest MSCI index rejig: Nuvama
Post changes, India will have 131 companies in the MSCI emerging Markets Index, and the nation’s weight will reach an all-time high of 16.3 per cent, analyst Abhilash Pagaria wrote in a note. Key Points
mintInflows into India-linked ETFs set to smash 2014 record
By Bansari Mayur Kamdar (Reuters) - Inflows into U.S.-listed exchange traded funds (ETFs) tracking Indian stocks were set for their best year on record, as the country's consistent economic growth and Key Points
ThePrintElections give investors new reason to buy emerging markets
India, meanwhile, is expected to hold its next general election in the first half of 2024, with polls already pointing to a third term for Prime Minister Narendra Modi. A win would likely mean a continuation of market-friendly reforms, infrastructure spending and a push for foreign direct investment, said Malcolm Dorson, senior portfolio manager and head of emerging markets strategy at Global X Management Co. Key Points
Economic TimesOil, gold jump on Middle East conflict; emerging market stocks down
By Caroline Valetkevitch NEW YORK (Reuters) - Oil prices jumped more than 4%, gold gained and the U.S. dollar edged up against the euro on Monday as military clashes between Israel and the Palestinian Key Points
ThePrint'Decade of emerging markets' may be about to regain traction
Developing-nation assets stand to finally take off in the second half, they say, as long as global interest rates peak, Chinese authorities prop up growth and structural reforms in India bolster sentiment. A revival may still make this the decade of emerging markets that Morgan Stanley Investment Management flagged earlier this year. Key Points
Economic Times
India's recovery bright spot for global outlook: Nirmala Sitharaman
India's rapid post-pandemic recovery is a bright spot for the global growth outlook , according to Finance Minister Nirmala Sitharaman. However, she also acknowledged the challenges faced by emerging market developing economies attempting to balance sustainable growth with environmental objectives. Speaking in Japan at the G7's meeting of finance ministers and central bank governors, Sitharaman also urged the bolstering of multilateral development banks to resolve the debt crisis faced by vulnerable nations. Key Points
Economic TimesCentral bankers' models need to increase emphasis on supply side: Shaktikanta Das
Macroeconomic models used by central banks so far have mainly focused on the demand side of the economy,'' Governor Shaktikanta Das told the 59th South East Asian Central Banks Governors' Conference held in Mumbai. Enough emphasis was not given on supply side factors. A better understanding of the supply side of the economy has become very important for conducting monetary policy more effectively. Key Points
Economic TimesWorld Bank notes jobless development in South Asia, calls for more reforms to increase employment ratios
The share of the employed working-age population has been declining since 2000 and is low, it said. In 2023, the employment ratio for South Asia was 59%, compared to 70% in other emerging market and developing economy regions. Key Points
Business TodayBigger, bolder MDBs help effectively deal with complex demands of emerging economies: DEA Secy
The sessions included focused discussions on facilitating strategic engagement with MDBs, exploring collaborative models of development financing and leveraging emerging technologies for transformative development, it added. During the seminar, the key points of focus included the urgent need to speed up MDB's operational processes and enhance its role in areas of credit enhancement and risk management to leverage greater private capital, the statement said. Key Points
Economic TimesGoldman's painful lesson on China forces rethink of emerging markets
At the beginning of the year, Goldman was among the chorus of Wall Street banks pinning their hopes for a bright 2023 in part on recovery in China, with strategists including Kinger Lau predicting a 15% rally in the Chinese stock market. The expectation was that a bounce in the world's second-largest economy would be the wave that lifted all boats, helping emerging markets globally to a banner year. Key Points
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Exclusive: JPMorgan sounds out investors on Venezuela bond index weightings -sources
JPMorgan (JPM.N) has reached out to Venezuela bondholders about normalizing the weighting of the country's international notes in its widely followed EMBI indexes, three sources with direct knowledge told Reuters. Key Points
ReutersIndia beats China as most attractive emerging market
India exemplifies the attributes sought by sovereign investors, said Terry Pan, Invesco's chief executive officer for Greater China, Southeast Asia and South Korea. Pan is the author of the report. Key Points
Economic TimesNifty at record high but CLSA is still underweight on India. 5 reasons why
Despite Nifty crossing the 19,000 mark for the first time with $10 billion in foreign institutional investor inflows, global brokerage firm CLSA remains cautious on Indian equities. According to CLSA, the reasons for their cautious stance include rich valuations, margin erosion, overly optimistic earnings growth expectations, the Reserve Bank of India lagging behind other emerging market central banks in policy easing, and overbought conditions in the market. CLSA believes that other emerging markets such as Brazil, Mexico, and Indonesia are better positioned for policy easing. Key Points
Economic TimesETMarkets Smart Talk: Retail money fueling rally in small & midcaps; expect modest return in FY25: Ramkuma
Ramkumar K, Chief Investment Officer, Reliance General Insurance, advises caution in selecting sectors and scrips due to emerging exuberance pockets, with modest equity returns expected. Watch FY25 for market movements, global policies, US elections, interest rate cuts, large banks, bad assets, energy sector as well as FIIs' interest in small & midcap stocks. Key Points
Economic TimesBiotech in India-US initiative iCET can aid access to & availability of drugs — Kiran Mazumdar-Shaw
iCET, an initiative to develop critical and emerging technologies, has just brought biotech & other digital infra within its ambit. Biocon founder was speaking at Global Technology Summit. Key Points
ThePrint
WEF says India's agri sector can scale new highs with AI, other emerging technologies
The agriculture sector in India can be transformed by promoting the use of artificial intelligence (AI) and other emerging technologies, according to a new World Economic Forum report. Releasing the phase-1 report of the 'Saagu Baagu' ('agriculture advancement' in the Telugu language) being implemented by the Telangana government in collaboration with it, the WEF said its AI for Agriculture Innovation (AI4AI) initiative has helped more than 7,000 chilli farmers get access to agritech services in the first phase. Key Points
Economic TimesIndia pips China as most attractive emerging market for investing: Invesco Global report
The Invesco Global Sovereign Asset Management report has captured the views of 142 chief investment officers, heads of asset classes, and senior portfolio strategists from 85 sovereign wealth funds and 57 central banks. Collectively, these institutions manage about USD 21 trillion in assets. Key Points
Economic TimesForget dripping money slowly over next 6 months, frontload investment now: Aashish Somaiyaa
“We ourselves, including me, used to tell everybody that there are many events on the horizon; one has to drip money slowly and steadily over a six-month period. But now back-to-back two or three of these concerns have got sorted out. So from that perspective, people have to change their thought process and have to front-load the investment. ” Key Points
Economic TimesTo take care of possible headwinds: 4 largecap stocks from different sectors with upside potential of up t
Market has a strange habit of giving surprises on both sides, moving up when no one is expecting and news is bad all around. Falling when no one is expecting it to fall and there is good news all around. So, in today’s time when there is good news all around, right from higher GDP numbers to better GST collections and on micro front companies announcing more orders and even words like expansion of capacity coming back, instead of predicting the time when there will be a correction, just be ready for it. Ready by staying with large caps and that too with sectors and stocks where some tailwinds are emerging. This is not to say that there cannot be some underperformance in large cap space, but the fact is that over the long term these large caps not only create much more wealth but in a bearish phase, they tend to protect the wealth by falling less as compared to mid and small caps. Key Points
Economic TimesA 10-12% crude correction may provide buying opportunities: Hemang Jani
The market correction is not confined to HDFC Bank only but is influenced by global markets and outflows across emerging markets. We should let the market stabilize for a few days. Midcap cement companies, Phillips Carbon Black, India-focused IT companies, MapMyIndia, Naukri, are potential buys. The best of the operating profit margins for crude beneficiaries like paints, tyres, OMCs may be behind them. A mini crude correction may present buying opportunities. Key Points
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White House proposes transportation, commerce agencies handle new space regulations
The Biden administration on Wednesday released a long-awaited proposal to split regulatory powers over emerging private-sector space activities between the U.S. transportation and commerce departments, according to a draft legislative proposal. Key Points
ReutersAlarm Bells! Polls to disrupt India stocks calm in 2024, says Morgan Stanley
Indian stocks have risen about 7% this year, outpacing their peers in Asia and emerging markets, as growth in earnings and the economy lured local and global investors. India VIX, a gauge of expected stock-price swings, has slumped 25% so far this year to near its historical low. Key Points
Economic TimesIndia and the US condemn terror, violent extremism
The India-US 2+2 ministerial meeting on Friday condemned terrorism and violent extremism, calling for concerted action against all terrorists. The statement did not explicitly name Pakistan or Hamas. The ministers emphasized the importance of upholding international standards on anti-money laundering and combating the financing of terrorism. Key Points
Economic TimesRBI's Shaktikanta Das says US should rethink currency manipulator list
India's central bank governor, Shaktikanta Das, has called for a review of the US practice of putting emerging markets countries on a watchlist as potential currency manipulators. He argued that emerging markets face challenges dealing with the spillover effects of advanced economy policies and that there needs to be a balanced approach. Key Points
Economic TimesIncredible India earns upgrade from CLSA. 8 reasons, 20 stock picks behind the U-turn
Last month, Nomura had also upgraded the Indian equity market to overweight status saying that valuations may remain expensive. In August, Morgan Stanley had upgraded India to overweight rating and ranked India as the No. 1 market in its basket of Asian emerging markets ex-Japan on the back of a structural uptrend and secular leadership. Key Points
Economic Times
Fewer reasons for FPIs to be bullish in October
After all, fresh foreign purchases will be key to revival of the stock market that has slid in the past two weeks after hitting all-time highs in mid-September. But with the surge in global oil prices, US bonds yields and the dollar contributing to fresh risk aversion in emerging markets, including India, brokers and strategists say the mood of the foreign investors remains cautious. Key Points
Economic TimesNifty may be back to 20K next week; bullish on 5 specialty chemical stocks: Sanjiv Bhasin
The capital good midcaps are playing out. A little bit of caution there, stay with the big one, Siemens, Bharat Forge, if you can term that as a capital good. Siemens, Bharat Forge, L&T, Thermax and ABB, are some of our preferred picks which are in our portfolio as a disclosure. We are not going overweight on them, we are staying put but like we said, these are the themes and that is why one can see that green shoots emerging on the capex side after 20 years . Key Points
Economic TimesReliance AGM: Reliance invested $150 billion in the last 10 years, says Mukesh Ambani
Reliance Industries Ltd has cumulatively invested USD 150 billion in the last 10 years, the biggest by any Indian corporate, its chairman and managing director Mukesh Ambani said on Monday. Speaking at the company's annual general meeting, Ambani said Reliance has been the forerunner of emerging new India. Key Points
Economic TimesIn H2, Bajaj Auto domestic biz showing signs of incremental growth; big opportunity seen in ASEAN: Rakesh
“Rather than V-shaped recovery, it is better for everyone, for the entire ecosystem, for the dealers, for the vendors, for the company, to see a robust if flatter recovery. We are seeing that happen. A 3-5% single digit positive is a nice recovery to see. The top half of the segment is growing in the higher single digits – 8-9%.” Key Points
Economic TimesAdani Group companies gain Rs 50,000 crore in m-cap
Adani Green jumped 10%, emerging as the biggest gainer among the group companies. Adani Power gained 9.2%, while ACC, Adani Total Gas, Ambuja Cements, Adani Wilmar and NDTV rose 4-5% each. Key Points
Economic Times
Nifty may hit 21,000 in 6-9 months; rally likely to be non-linear with 5-7% intermediate corrections, says ICICI Direct
The Nifty50 index could reach 21,000 in the next 6-9 months, but expect the rally to be non-linear with intermittent corrections of 5-7%, says ICICI Direct. It also believes that Indian equities will outperform developed and emerging market equities in the coming years. Key Points
mintA $590 billion India stock market rally faces earnings, retail selling tests
The valuation premium for stocks in the South Asian nation has risen sharply against that of emerging market, Asian and global peers. “In the short-term, the market has got stretched, so a 3-5% correction is on the cards,” said Atul Suri, a fund manager at Marathon Trends Advisory Pvt Ltd. Key Points
Economic TimesShubman Gill ‘Most Liked emerging Player', MS Dhoni ‘Most Favourite Captain’: Report
Shubman Gill of Gujarat Titans has been chosen as the season's most liked emerging cricketer in the 'IPLomania 2023' report by Hansa Research. The report cited his consistency and entertainment value as the reasons for his popularity. Gill is currently ranked fifth in the 'Favourite Players Ranking', up from 69th position in IPL 2022. Chennai Super Kings led by MS Dhoni received the highest audience support in the survey's results. Key Points
Economic TimesGlobal inflows help Indian stocks become EM Asia’s top gainers
Foreign investors have increased inflows into Indian stocks to a nine-month high in May. They purchased a net $5bn of the countrys shares last month, the most since August, according to Bloomberg. The purchases continued for 24 consecutive days, the longest string since August last year. The surge in investment has propelled Indian equities to the top of emerging Asia's leaderboard. Key Points
Economic TimesSIPs and SWPs combo to lead to the next big phase of investment: Prateek Pant, WhiteOak Capital AMC
India is attracting a lot of foreign institutional investors (FIIs) due to its unique position of being an outlier in uncertain global macroeconomics, according to Prateek Pant, Chief Business Officer at WhiteOak Capital AMC. Pant also said that India is well-positioned in terms of consumerism, capital growth and the health of the financial sector, making it attractive for investors seeing the potential of a 3-5 year investment. Key Points
Economic Times
Doing Justice with AI
Emerging technologies are fast being introduced and used in various industries. However, one area of great potential for the same is the judiciary. Key Points
Financialexpress‘Nari shakti’ playing significant role in emerging Indian power: PM Modi addresses 99th edition of ‘Mann Ki Baat’
The last 'Mann Ki Baat' was aired on Feb 26. The 100th episode of PM Modi's monthly radio programme is set to air on April 30. Key Points
The Indian ExpressInflation to impact profitability and growth: S&P Business Outlook Survey
The headline value of the index or the net balance declined to 21% in February compared to 28% in October, indicating a weaker degree of optimism. The global average was 32%, whereas the emerging markets averaged 33%, as per the report released on Monday. Key Points
Economic TimesView: India isn’t immune to the stagflation that felled its neighbors
Luckily for India, a part of this two-year period coincided with a post-Covid-19 reopening. Self-sufficiency in food production, a sizeable foreign-exchange war chest and a vast software exports industry helped cushion the commodity and hard-currency shortages that, in various degrees, hobbled the regions frontier markets: Sri Lanka, Pakistan and Bangladesh. Key Points
Economic Times