MOSL: Morning India (17/March/20): 1. India Strategy (Eyeing markets through key charts); 2. Power & Coal monthly (Power demand showing signs of recovery)
Morning India (17/March/20):
Today’s top research theme
India Strategy – Eyeing markets through key charts
** Indian equity markets have corrected significantly over the last one month (Nifty down ~26% from its 52-week high of 12,362 to the lows of 16th Mar'20) in tandem with global equity markets due to headwinds from the Covid-19 outbreak across multiple countries.
** However, we note that such significant corrections have opened up equally significant investment opportunities in the past
** In this report, we look at several important investment parameters across cycles in the last two decades (Market movements, Absolute market-cap behavior, Past corrections, Polarization, Multiple Valuation metrics) and highlight our preferred investment bets in different buckets.
** While our bottom-up earnings forecast and compilation will be released in Apr'20 with 4QFY20 Strategy Preview, we are assuming a 10% cut in Nifty earnings estimates for FY21 for valuation analysis in this report. This is to factor in both global and local headwinds and disruptions owing to the outbreak of Covid-19.
** Global Cyclicals will see significant earnings downgrade given the sharp fall in commodity prices and expected moderation in global economic growth. Domestic economy facing sectors will also see downward revision in the earnings forecast due to restricted movements to prevent the outbreak of coronavirus.
Piping hot news
CCI imposes Rs 302 cr penalty on Grasim Industries
The Competition Commission has slapped a penalty of Rs 302 crore on Grasim Industries for abusing its dominant position with respect to supply of a certain staple fibre to spinners. Besides, the company has been directed to "cease and desist" from indulging in anti-competitive practices as well as put in place a transparent "discount policy" for all the market participants.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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