Indian market does well among emerging peers
Indian market does well among emerging peers
In August, MSCI India index outperformed many emerging markets (EMs) and Asian markets. India’s performance ranking rose to the eighth position in August from 16th in the previous month. Even as India’s year-to-date performance ranking in EM has slipped to the ninth position, India is the second best performing market in Asia.
Sector performance: Consumer staples and technology (from the worst in the previous month) were the best performing sectors, while telecom and materials were the worst. Relative to emerging markets, consumer staples outperformed, while telecom underperformed. For year-to-date, consumer staples and financials hold the top positions, while telecom and technology are at the bottom. The sector rotation breadth is off its 20- month high, while depth has risen to a 12-month high
Institutional flows: Foreign institutional investors (FIIs) bought another $1.8 billion in the cash market; domestic institutions remained sellers at $750 million. Since the start of the year, FIIs have bought stock worth $11.9 billion, while domestic institutions have sold stock worth $5.5 billion, with domestic mutual funds and insurance companies selling equities worth $1.9 billion and $3.6 billion, respectively.
Valuations: Both absolute and relative valuations were flat month-on-month.
Earnings growth revisions: The earnings growth for MSCI India for FY13 was revised down by 1.6 percentage points to 13% year-on-year with telecom seeing the most downward growth revisions. In August, industrials saw the most negative revisions breadth.
Currency: The rupee appreciated month-on-month against the dollar by 0.5% and ended the month down 2% against the euro.
Bond market: The yield curve remained slightly inverted for the seventh consecutive month.
Edited excerpts from a report by Morgan Stanley. Comment at mintmoney@livemint.com.
Also See | MSCI India: Outperforms EM and Asia (PDF)
PDF by Ahmed Raza Khan/Mint
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!