Readings: Morgan Stanley GSB, Sensex from 7k to 20k, RBI Macro review
- Morgan Stanley Global Strategy Bulletin: India Equity Strategy
. . . market participants are lowering their expected return from stocks while assuming that the volatility in the growth of cash flows is likely to be less than in the past. Using our residual income model for the constituents of the BSE Sensex it appears that the market is expecting a risk premium of 3.9%.
- Economic Times: Sensex: Journey from 7,000 to 20,000!
Oct 07: At the height of the dotcom mania in 1999-00, the easiest way to maximise returns was to buy into any stock with the suffix ‘Software’ or ‘Technologies’. Eight years on, the same seems to hold true for any stock with the prefix ‘Reliance’, given their baffling run-up over the past one month.
Oct 06: A sense of having been left out, rather than of euphoria, is what one gets on the street as the 30-share Sensex crossed yet another milestone - the psychological 13,000-mark - on Monday. On paper, the index has rallied 47% from its low in June this year. But most brokers will tell you that barring a handful of foreign fund houses and some prominent traders, few investors have been able to capitalise on the rebound, which has been led by a handful of frontline stocks.
Oct 05: We’re running out of historic metaphors, but the sensex just doesn’t seem to notice that it’s doing a death-defying trapeze act . . . Vaulting over hurricanes, skipping on boiling oil, the BSE benchmark index triumphantly waved to the world from top of the global skyline at 8,000.
- Reserve Bank of India: Macroeconomic and Monetary Developments: Mid-Term Review 2007-08
- Growth in broad money (M3), year-on-year (y-o-y), was 21.8 per cent (Rs. 6,41,464 crore) on October 12, 2007 as compared with 18.9 per cent (Rs. 4,66,603 crore) a year ago.
- Growth in bank credit moderated after the strong pace in the preceding three years. Non-food credit by scheduled commercial banks (SCBs) moderated to 23.5 per cent (Rs.3,77,759 crore), y-o-y, as on October 12, 2007 from 30.0 per cent (Rs.3,70,226 crore) a year ago.
- During 2007-08 (up to October 19, 2007), net inflows by FIIs amounted to US $21.2 billion as compared with outflows of US $ 933 million in the corresponding period of 2006-07.
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