- Global investor sentiment declined due to weak economic data from major economies and falling commodity prices, with the MSCI AC World Index closing down 2.17%.
- The IMF maintained its global growth projections of 3.2% in 2013 and 4% in 2014, but noted ongoing downside risks from issues in advanced economies like high government debt.
- Major commodity prices rebounded slightly from sharp declines, but the Reuters Jefferies CRB Index still closed down 1.40%. Gains in select emerging markets helped offset global declines.
SandPointe
Investment Perspective
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Roger E. Brinner, PhD
Chief Market Strategist and Co-founding Partner
September 2014
Interbank call money rates remained below the RBI’s repo rate of 6.50% during most of the month. Sporadic tightness in systemic liquidity prompted the central bank to conduct regular repo auctions and keep call rates in check. The RBI also conducted reverse repo auctions to prevent the rates from dipping too low and to provide banks with opportunities to park idle funds.
Currency in circulation rose 19.1% on-year in the wee
We believe valuations are not cheap, but business cycle remains in the nascent stage. Prefer middle-of-the-road approach and recommend investing in schemes with higher flexibility.
Our ‘VCTS’ framework (Valuations, Cycle, Trigger, Sentiments) is currently indicating that market Valuations are not cheap. Business Cycle remains in the nascent stage.
Equity investing can be looked at only from a long term perspective coupled with “Dynamic Asset Allocation Scheme’ that aims to manage market volatility.
SandPointe
Investment Perspective
-----------------------------------------------------------------
Roger E. Brinner, PhD
Chief Market Strategist and Co-founding Partner
September 2014
Interbank call money rates remained below the RBI’s repo rate of 6.50% during most of the month. Sporadic tightness in systemic liquidity prompted the central bank to conduct regular repo auctions and keep call rates in check. The RBI also conducted reverse repo auctions to prevent the rates from dipping too low and to provide banks with opportunities to park idle funds.
Currency in circulation rose 19.1% on-year in the wee
We believe valuations are not cheap, but business cycle remains in the nascent stage. Prefer middle-of-the-road approach and recommend investing in schemes with higher flexibility.
Our ‘VCTS’ framework (Valuations, Cycle, Trigger, Sentiments) is currently indicating that market Valuations are not cheap. Business Cycle remains in the nascent stage.
Equity investing can be looked at only from a long term perspective coupled with “Dynamic Asset Allocation Scheme’ that aims to manage market volatility.
In the style of Pecha Kucha, this is my attempt to inform and persuade the audience of the harms of secondhand smoke as well as pass an amendment against smoking in public areas such as beaches and parks.
April 2013 HUG: Storm and Hadoop - Convergence of Big-Data and Low-Latency Pr...Yahoo Developer Network
At Yahoo!, Hadoop plays a central role in providing personalized experiences for our users and creating value for our advertisers. In this talk, we will discuss the convergence of low-latency processing and Hadoop platform. Through a collection of use cases, we will explain how Yahoo! delivers personalized user experience through Hadoop and Storm. We have developed Storm-on-YARN to enable Storm streaming/micro-batch applications and Hadoop batch applications hosted on a single cluster. Storm applications could leverage YARN for resource management, and apply Hadoop style security to Hadoop datasets on HDFS and HBase. Yahoo! has recently released our Storm enhancement as open source.
Presenter(s):
Andy Feng, Distinguished Architect, Cloud Engineering Group, Yahoo!
Bobby Evans, Tech Yahoo!, Apache Hadoop PMC and Committer
A mutual fund is the money pooled in by a large number of investors and offers an opportunity to invest in a diversified and professionally managed basket of securities at a relatively lower cost. Read for more details.
Risk is a result or outcome which is other than what is / was expected. It is the amount of money that an investor can afford to lose in the interim, in his quest for certain return on investments. It is a state of uncertainty. Read more to find out how to access your risk appetite.
Asset allocation is an investment strategy. It helps to keep a balance between risk and return of any particular asset class. Asset allocation refers to investing a certain percentage of your investible surplus in respective asset classes, such as equity, debt, gold and real estate. Read to understand asset allocation in detail.
As you may be aware, life expectancy of individuals has increased; which brings with it rise in medical and living costs during old age. Therefore, it is imperative to make provision for expenses wisely. All of us want to maintain our standard of living during our old age as well, but to do so we need to actually start thinking and planning for our retirement right from the beginning of our career when we are young. This ppt aims to help you understand how you can identify and establish your financial goals.
As you may be aware, life expectancy of individuals has increased; which brings with it rise in medical and living costs during old age. Therefore, it is imperative to make provision for expenses wisely. All of us want to maintain our standard of living during our old age as well, but to do so we need to actually start thinking and planning for our retirement right from the beginning of our career when we are young.
This session aims to help you understand how you can identify and establish your financial goals.
An Investor Education & Awareness Initiative By Franklin Templeton Mutual Fund
In order to check your financial health, you need to ask yourself a few questions related to your finances. In this, learning session you will understand those questions which will help you plan you finances better.
An Investor Education & Awareness Initiative By Franklin Templeton Mutual Fund
The inflation bug as we learnt in our earlier learning ppt, "Are you Saving or Are you Investing", eats into our hard earned savings. So the value of our money reduces. Here in this learning session let’s learn more about “Time Value of Money”, which can help you manage your finances better.
An Investor Education & Awareness Initiative By Franklin Templeton Mutual Fund
Many people often misconstrue savings with investments. But let us tell you that there is indeed a difference between the two. Merely putting aside money under the mattress, or in a vault, bank locker or savings bank account after meeting your expenses and liabilities may not mean that money works for you. In times where the inflation bug is eating into your earnings, you need to move a step forward and invest. More importantly, invest wisely! By now many of you may have realized that there is indeed a difference between saving and investing. So let’s delve a little deeper and understand the difference between the two…which can help us march forward in our journey of wealth creation.
An Investor Education & Awareness Initiative By Franklin Templeton Mutual Fund
1. International
Global investor sentiment was impacted by relatively weak economic data from key economies.The sharp
declines in commodity prices exacerbated selling pressure and the MSCI AC World Index closed down
2.17%. Equity markets in select Emerging economies notched gains, on hopes that the recent fall in
commodity prices will ease inflation and current account pressures. As per IMF, recent policy efforts have
helped contain short-term risks, however medium to long term downside growth risks remain elevated.
IMF’s global economic growth projections were largely unchanged - 3.2% in 2013 (from 3.5%) and 4% in
2014, and has indicated that the macro environment has improved over the last 6 months. It has highlighted
the issues facing advanced economies (with the exception of the US). Whilst short term risks have been
contained by policy measures, structural issues such as soaring government debt and eventual deficit
reduction efforts impacting growth, continue to pose downside risks. Major Treasury bond markets reversed
gains at end of week on speculation stimulus measures will continue.Towards the close of week, commodity
prices rebounded from the sharp sell-off seen earlier, but the Reuters Jefferies CRB Index still closed down
1.40%. G20’s acceptance of Japan’s monetary policy stance led the Japanese yen lower.
• Asia-Pacific: Gains in India, China and Indonesian equity markets helped regional equities outperform
global counterparts. China’s economy grew by 7.7% in Q1-2013 compared to 7.9% reported in the
sequentially previous quarter. Both local demand and external factors contributed to the slowdown.
Japanese exports continued to gain in March helped primarily by increased exports to the U.S. Japanese
industrial production data also reinforced signs of improvement – February’s revised industrial data
showed an increase of 0.6% mom (sa) compared to a 0.1% mom fall reported earlier. South Korea unveiled
a $15.3 bln stimulus package focused on small businesses, creating jobs and lifting property markets.
• Europe: Global growth concerns weighed on European equity markets this week. French government
relaxed austerity targets while Portugal announced new spending cuts to plug the gap stemming from
the Constitutional court ruling earlier this month. Fitch cut UK’s credit rating one level to AA+ citing
weaker economic and fiscal outlook. German manufacturing orders rose 2.3%mom in February. In
Turkey, the monetary policy committee (MPC) cut all key interest rates by 50 bps. Riksbank left policy
rates unchanged and indicated the accommodative stance will be maintained for longer period of time.
On the corporate front, DISH Network offered $25.5 bln for Sprint Nexel.
• Americas: The mood in US equity markets was dampened by weak economic and earnings data.Reports
of higher initial jobless claims renewed concerns about labour market. Bank of Canada remained on hold,
while Brazil raised the benchmark Selic rate by 25 bps to 7.5%, citing rising inflationary pressures.
Colombia’s $2.7 bln stimulus package contained a host of measures to curb currency appreciation
(including higher provision for private pension fund investments overseas) and boost local industries &
infrastructure.Venezuela elected Nicolás Maduro as president. Blackstone ended its pursuit for Dell, citing
amongst other reasons the recent sharp fall in PC sales.
Market Review
WEEK ENDED APRIL 19, 2013
2. Weekly Weekly
change (%) change (%)
MSCI AC World Index -2.17 Xetra DAX -3.68
FTSE Eurotop 100 -2.14 CAC 40 -2.07
MSCI AC Asia Pacific -1.36 FTSE 100 -1.53
Dow Jones -2.14 Hang Seng -0.34
Nasdaq -2.70 Nikkei -1.25
S&P 500 -2.11 KOSPI -0.91
India - Equity
Indian equity markets were buoyed by the steep correction in global commodity prices this week. Given
India’s large dependence on imports for crude oil, high gold consumption and subsidy regime, the fall in
global prices assuaged investor concerns on twin deficits (current account and fiscal) & inflation.
Improved corporate earnings newsflow also had a positive impact. Gains in large cap stocks outpaced those
in mid and small cap segment. Except technology, all sectoral indices notched up gains. FIIs bought
equities to the tune of $101 mln in the first three trading days of the week.
• Macro: Growth in India’s exports accelerated to 7%yoy in March from 4.2%yoy in February helped by a
low base effect and seasonality.At the same time,led by fall in oil prices,imports fell by 2.9%yoy.These trends
helped the trade deficit narrow to $10.3 bln from $14.9 bln in February ($191 bln for FY13).This means
that the current account deficit (CAD) could ease from record highs touched last quarter.
Monthly Trade Balance (USD bln)
Source: CLSA Asia-Pacific Markets
The recent sharp correction in international commodity prices along with fall in gold prices augurs well for
India’s trade balance. This along with signs of improving external demand amidst large stimulus and
continued FII inflows can help contain pressures on India’s Balance of Payments in the near term.The trade
policy unveiled this week contained some measures to boost exports,but more concerted efforts are required
for sustainable reduction in CAD.
3. Weekly change (%)
S&P BSE Sensex 4.24
CNX Nifty 4.60
CNX 500 4.00
CNX Midcap 2.76
S&P BSE Smallcap 1.76
India - Debt
Indian treasury bond markets rallied as the fall in global crude oil and gold prices, along with positive WPI
data stoked expectations of policy rate cuts.
• Yield movements: Yields eased across the yield curve - benchmark 10-year gilt yield decreased 12 bps,
while yields on the 1 year paper moved down 10 bps.Yields on the 5 and 30-year paper eased 12 and
14 bps respectively.
• Liquidity/borrowings: Overnight call money rates hovered around 7.5% levels and demand for liquidity
under the RBI’s LAF window was lower compared to previous week. Scheduled auctions of four GOI
securities worth Rs. 15,000 crores were oversubscribed close to 4x.
• Forex: Helped by positive trade data and commodity markets news flow,the Indian rupee extended last week’s
gains and closed up 1%.As of Apr 12, Indian forex reserves stood at around $295.2 bln, about $1.4 bln higher
than previous week levels.
Headline inflation trends
Source: Citigroup
• Macro: March headline inflation reading surprised positively.Wholesale price inflation eased to 5.96% from
6.84% last month and core inflation came in below 4%.A negative however was the sharp upward revision to
January inflation numbers to 7.2% from 6.6%. Given that tradables account for 57% of the WPI basket, the
ongoing decline in commodity prices could aid faster deceleration in headline inflation.