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MOSL: Morning India (26/September/18)-1. BRICKs+ (Economy: 3Q 2018: India vis-à-vis other Emerging Markets)- 2. Expert Speak (US generics in recovery mode)-3. Bharat Electronics

MOrning India (26/September/18): 1. BRICKs+ (Economy: 3Q 2018: India vis-à-vis other Emerging Markets); 2. Expert Speak (US generics in recovery mode); 3. Bharat Electronics

 

Today’s top research theme

BRICS+: 3Q 2018: India vis-à-vis other Emerging Markets

In this publication, we provide the comparative analysis of the macroeconomic conditions in the world's 10 major emerging markets (EMs) - Brazil, China, India, Indonesia, South Korea, Malaysia, Russia, South Africa, Taiwan and Thailand. Key highlights:

• Most equity benchmark indices in EMs have exhibited an uptrend in 3QCY18 - Brazil has emerged as the top performer, while China has disappointed. Most EMs have witnessed a hardening of bond yields and depreciating currencies in the last three months.
• Macro risk-return has improved for most EMs over the past year, with Russia and Brazil witnessing the sharpest improvement. Further, most EMs have deleveraged over the last two years.
• Policy rate hikes are still not prevalent among EMs. Inflation is broadly contained and central bank balance sheet growth has remained subdued.
• Exports growth has broadly softened since the beginning of the year and current account balances have weakened across most EMs. Overall, measures of external vulnerability have also deteriorated across EMs.

Piping hot news

India is said to cut imports of Iranian oil to zero in November

• India is not planning to buy any crude oil from Iran in November, raising the prospect that Tehran will lose another major customer as U.S. sanctions hit. Indian Oil Corp. and Bharat Petroleum Corp. haven’t asked for any Iranian cargoes for loading in November, according to officials at the companies. Nayara Energy also doesn’t plan any purchases, said an industry executive.