Ways2Capital Equity Research Report 16 November 2015

INDORE, India - Nov. 16, 2015 - PRLog -- NSE - WEEKLY NEWS LETTERS

TOP NEWS OF THE WEEK

1. A nervous Dalal Street dreads a selloff by FIIs on BJP's Bihar defeat - Bharatiya Janata Party (BJP)'s disappointing show in the Bihar elections may not go down well with investors in the near future. The stock market could drop early this week, extending its recent declines, as investors worry that the political capital available with Prime Minister Narendra Modi to push pro-business measures will wane following BJP's second consecutive state election defeat. Comments from US Fed officials hinting at the possibility of rate hikes in December could also add to Dalal Street's near-term problems. Foreign investors have been watching the Bihar elections as the outcome had been widely considered a test of Modi's popularity after 17 months at the helm at the centre. "Many foreign investors would now be worried about further political gridlock in Parliament, as this (the Bihar poll results) could further embolden the Opposition," said Pratik Gupta, managing director & head equities, Deutsche Bank Group.

2. China policymaker says 6.5% a floor for 2016-2020 annual growth - China is making 6.5 per cent a floor or minimum level for annual economic growth in 2016 through 2020, a senior Chinese policymaker said on Monday, adding that the figure would be a base for setting a target for the five-year period. The economic growth target has not been fixed yet, as that is an objective that needs to be approved by the National People's Congress, Yang Weimin, Vice Minister of the Office of the Central Leading Group on Financial and Economic Affairs, told a news conference in Beijing. The National People's Congress holds an annual meeting of policymakers in March, which sets key economic targets for the year. "The 6.5 per cent itself is not a target. We still need to wait till next March to determine the final target," Yang said. China's President Xi Jinping said last week that China needed to maintain annual economic growth of at least 6.5 per cent over the next five years to realise the country's goal of doubling 2010 GDP and per capita income by 2020.

3. FPIs take out Rs 4,300 cr in just 5 trading days - Foreign investors have pulled out more than Rs 4,300 crore from Indian capital markets in the past five trading sessions due to muted quarterly earnings and fears of a possible rate hike by the US Federal Reserve. The move comes after Foreign Portfolio Investors (FPIs) inflow had hit a 7-month high in October. As per data compiled by the depositories, net outflow in equities stood at Rs 2,667 crore between November 2-6, while it was Rs 1,689 crore for debt, translating into a total of Rs 4,356 crore. Prior to that, FPIs had made a net investment of Rs 22,350 crore last month, making it the highest investment by these investors since March, when they had poured in Rs 20,723 crore into Indian markets. The huge inflows during October also reversed the outflows seen during the past two months. FPIs pulled out over Rs 23,000 crore from the capital markets (equities and debt) in the past two months on fears of an economic slowdown in China, which triggered a global sell-off.

4. No impact of Bihar on rating outlook, FII flows: Fitch - Rating agency Fitch has said that the Bharatiya Janata Party's rout in the Bihar election would not impact the medium-term economic outlook for India. The agency has also said that foreign investors are unlikely to review their position. "The BJP's defeat in the Bihar state assembly election does not change our view on the medium-term economic outlook for India. The loss may complicate politics for the central government, but we don't expect major implications on the economic front. The election results are not likely to impact decisions by foreign investors in other states and a big win for the BJP in Bihar would not have led to sufficient support in the Rajya Sabha anytime soon anyway," said Thomas Rookmaaker, director in Fitch Ratings' Asia-Pacific Sovereigns team.

For Quick Trial – 08962000225

Or mail us here: info@ways2capital.com or visit http://www.ways2capital.com/free-trial.php

Contact 0731-6554125

Toll Free – 1800-3010-2007

Give a Missed Call for Free Trial - 09699997717

For Reports And Tracksheets - http://www.ways2capital.com/downloads.php