Read more about India could see a record equity supply of Rs 2-3 trn in FY22: Jefferies on Business Standard. Over the past decade, the contribution of IPOs to equity fund-raising at around 27 per cent has been muted, Jefferies said
With markets at new highs, Jefferies expects India to see a record equity supply of $30-40 billion (Rs 2-3 lakh crore) in the ongoing financial year. Of which, initial public offerings would likely account for around 40%, the research firm said in a report co-authored by its equity analysts Mahesh Nandurkar and Abhinav Sinha.
Analysts cautious on corporate earnings growth amid Covid-led lockdown business-standard.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from business-standard.com Daily Mail and Mail on Sunday newspapers.
Curbs in Maharashtra put in place in the backdrop of rising Covid-19 cases followed by the night curfew imposed in Delhi has made analysts a worried lot, with brokerages now favouring defensive stocks over cyclical plays. With Covid-19 cases rising in the country, they feel more restrictions could follow across major cities. Though a national-level lockdown is ruled out for now, the state-level situation will be different. As such, Maharashtra and Delhi’s measures may be followed in other states in case coronavirus cases spike. As a result, the potential spread of local lockdowns would likely delay the expected recovery.
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https://mybs.in/2ZcmgI3 Even though the rise in oil prices can strain the fiscal position of an economy, a rise in oil prices – if driven by a surge in demand / consumption – is a positive for equity markets, say analysts. In their recent note, analysts at Jefferies estimate that every $10 per barrel (bbl) rise in the Brent oil price raises India’s trade deficit by around 40-50 basis points (bps). Yet, they believe that the equity markets should be able to digest the recent spurt. “A $70/bbl of crude would have a 100-120 bps impact on current account deficit (CAD). Improving domestic demand on a low base would drive CAD to 1.5 per cent in fiscal 2021-22 (FY22) versus a 0.7 per cent surplus this year. However, we still expect balance of payments (BoP) to be a positive around 1.2 per cent as capital account (FDI, ECB and NRI deposits) should see over $80 billion surplus,” wrote Mahesh Nandurkar, managing director at Jefferies in a recent co-