JP MORGAN INDIA
![Hot stocks: Brokerage view on Cyient, Varun Beverages and Avenue Supermarts](https://img.etimg.com/thumb/msid-112668698,width-100,height-75,resizemode-4/markets/stocks/news/hot-stocks-brokerage-view-on-cyient-varun-beverages-and-avenue-supermarts.jpg)
Hot stocks: Brokerage view on Cyient, Varun Beverages and Avenue Supermarts
JP Morgan maintained an overweight rating on Cyient, targeting Rs 2,100. BofA continued to favor Varun Beverages with a target of Rs 1,840, citing strong fundamentals. UBS retained a buy rating on Avenue Supermarts, setting a target price of Rs 6,000 due to strong demand and sales growth.
![Even as forex assets surge, RBI continues to buy gold aggressively](https://img.etimg.com/thumb/msid-112531146,width-100,height-75,resizemode-4/markets/commodities/even-as-forex-assets-surge-rbi-continues-to-buy-gold-aggressively.jpg)
Even as forex assets surge, RBI continues to buy gold aggressively
Foreign currency assets worth $19 billion were added to the stock of reserves in the month of July in one month since certain Indian government bonds were included in the JP Morgan bond index.
![Liquidity bonds all along yield curve on global flows](https://img.etimg.com/thumb/msid-112480459,width-100,height-75,resizemode-4/markets/bonds/liquidity-bonds-all-along-yield-curve-on-global-flows.jpg)
Liquidity bonds all along yield curve on global flows
While volumes in the highly liquid 10-year benchmark government bond have predictably increased, what distinguishes the current spate of foreign inflows from other episodes of global investment is a higher degree of transactions in traditionally illiquid securities, referred to as 'off-the-run' bonds in trading parlance.
![KKR drops plans to sell school chain Lighthouse Learning](https://img.etimg.com/thumb/msid-112475456,width-100,height-75,resizemode-4/industry/services/education/kkr-drops-plans-to-sell-school-chain-lighthouse-learning.jpg)
KKR drops plans to sell school chain Lighthouse Learning
KKR had just sent preliminary feelers to buyout funds and educational groups based out of West Asia and Europe to sell its five-year-old portfolio company, having hired JP Morgan and Avendus to run the sale process earlier this year. However, no financial details and other operational details were shared as the fund decided on the U-turn. KKR was expecting a a valuation of $1-1.2 billion (Rs 8,300-10,000 crore), ET reported in May.
![India's forex reserves touch a fresh high of $674.9 bn as of Aug 2](https://img.etimg.com/thumb/msid-112407945,width-100,height-75,resizemode-4/news/economy/indicators/indias-forex-reserves-touch-a-fresh-high-of-674-9-bn-as-of-aug-2.jpg)
India's forex reserves touch a fresh high of $674.9 bn as of Aug 2
India's foreign exchange reserves reached a new high of $674.9 billion for the week ending August 2, 2024, according to the Reserve Bank of India (RBI). The reserves increased by $7.5 billion, driven mainly by a $5.1 billion rise in foreign currency assets.
![Bharti Airtel to deliver 14%/16% CAGR in India revenue/Ebitda over FY24-27: Analysts](https://img.etimg.com/thumb/msid-112313958,width-100,height-75,resizemode-4/markets/stocks/news/bharti-airtel-to-deliver-14/16-cagr-in-india-revenue/ebitda-over-fy24-27-analysts.jpg)
Bharti Airtel to deliver 14%/16% CAGR in India revenue/Ebitda over FY24-27: Analysts
Bharti Airtel is poised for strong growth in revenue and EBITDA from FY24 to FY27, aided by anticipated tariff hikes and decreased capex. The company generated $2.3 billion in free cash flow over the last year and aims to reduce its debt. Mobile revenue and ARPU rose, with further gains expected from recent price hikes.
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Foreign flows into G-secs cross $9 billion in 7 months, top 2023 tally
Foreign investments in Indian government securities have surged past $9 billion in the first seven months of 2023, outperforming the whole of last year. This trend is driven by the inclusion of Indian bonds in the JP Morgan index and positive global sentiments due to anticipated US rate cuts and declining US bond yields.
Budget 2024: India needs to sell assets to support spending, JPMorgan says
India must focus on asset monetisation, says Sajjid Z. Chinoy, chief India economist at JPMorgan Chase, for fiscal prudence and funding, with Modi aiming to reduce the fiscal deficit. Tax revenues, RBI dividends will help improve credit ratings. Coalition pressures led to small stake offerings, replacing big-ticket sales. The budget aims to raise 500 billion rupees by March, supporting human capital investment effectively.
Budget 2024: No meaningful strategy to broaden growth drivers in India: Jahangir Aziz, JP Morgan
Jahangir Aziz from JPMorgan criticized India's Budget for its narrow focus on infrastructure and insufficient skilling funds. It positively impacted bonds by lowering borrowing targets but negatively affected equities with higher taxes. No broader growth strategy for private investment or consumption. Key factors include U.S. bond yields, dollar, Trump 2.
Foreign flows in G-secs top $1 billion in two weeks
Flow post inclusion in JP Morgan global index, analysts expect investment of around $2 b per month; India likely to reach maximum weight of 10% in Index over the next 10 months
Rush begins for investment tools, India-linked ETFs now in high demand
India's inclusion in JP Morgan's bond index in September 2023 has increased global interest in local debt. ETFs, such as L&G ($698.9 million), UTI, BlackRock, Xtracker's, and Tabula's, now manage $835 million. Smaller investors use ETFs or Total Return Swaps, bypassing multiple operational layers, streamlined by UCITs regulations as of May 31, 2024.
FII flows into debt may lead to a balance of payments surplus of over $50 billion due to JP Morgan Bond index inclusion
SBI forecasts India's balance of payments to show a surplus of $52 billion this fiscal year, with FII inflows expected to reach $25 billion. Current account deficit projected at 0.9% of GDP in FY25. Factors like government fiscal measures and bond market developments influencing economic outlook.
On top of JPM flows, Indian debt to grab EM spotlight when US cuts rates
Local traders broadly expect a $2 billion-per-month foreign flow from inclusion in a JP Morgan bond index, but a senior Citi executive feels that number may be topped as the Fed is likely to start cutting rates soon, turning Indian debt into a favourite within the emerging markets pack.
US rate cuts can spur inflows into Indian debt: Citi Exec
Global interest in Indian debt is set to surge, potentially exceeding the expected $2 billion monthly inflow from JP Morgan's bond index inclusion. Citi's Aditya Bagree forecasts a boost as the US Federal Reserve eyes rate cuts, likely triggering EM bond fund inflows. He highlights India's sovereign debt as a top volatility-adjusted carry trade in the region. Despite recent inflows totaling $32 billion, passive investments and India's economic resilience could drive more robust foreign participation. The rupee's stability and favorable economic indicators further bolster investor confidence in Indian assets.
Rate derivatives: Banks seek hike in foreign investor cap
Banks asked RBI to increase foreign OIS transaction limits post JP Morgan's index inclusion spiked demand. The ₹350 crore limit is near exhaustion at ₹11.3 crore by July 10, per Clearing Corporation. OIS transactions for hedging and rate bets settle in rupees, convert to US dollars. Foreign investors purchased $11 billion of Indian government bonds.
Proxy debt plays may slow as JPM index inclusion progresses
Analysts predict the Centre will maintain or reduce the fiscal deficit target to 5% of GDP in the upcoming budget, as foreign investment in Indian government bonds surges post JP Morgan index inclusion.
New system to ease FPI access to Gsecs awaits RBI nod
Foreign investors seek improved access to Indian bonds through global platforms, awaiting RBI approval. The new model aims for efficient trading with straight-through processing on the NDS-OM platform.
Sagility India files prospectus
EQT's Sagility India filed a DRHP for an IPO, offering 984 million equity shares. Sagility BV is the promoter. FY24 revenue reached ₹4,753 crore, setting the stage for a significant market debut.
FIIs end up buying Indian stocks worth over Rs 26,000 crore in June, all eyes now on Budget
After being net sellers in the last two months, a U-turn by FIIs comes amid expectations that reforms will continue after the elections. Improved GDP growth forecast and solid earnings by India Inc has also increased the appeal for FIIs, analysts say.
First day JPM flows not a deluge, but bankers confident of steady flow going ahead
From Thursday to Friday, foreign portfolio investors (FPIs) increased their holdings in the index-eligible Fully Accessible Route (FAR) suite of government bonds by Rs 1,545.16 crore, bringing the total to Rs 1.86 lakh crore, according to data from the Clearing Corporation of India Ltd (CCIL) released at 6 pm. This increase left traders somewhat disappointed, as some market segments had anticipated a surge exceeding Rs 10,000 crore on Friday alone.
007 Effect! JPMorgan bond inclusion can attract $2-3 billion monthly FII inflows into India
Since October 2023, non-residents have invested nearly $15 billion in Indian government bonds, including $5 billion through USD-settled, INR-denominated supranational bonds. Starting from Friday, passive fund inclusion will begin at a rate of 1% per month, leading to total inflows of $25-30 billion by the time full weightage is reached.
India inclusion in JP Morgan Bond index from today, $25-30 bn flow expected. What it means
India, which has been on index watch since October 21, upon its inclusion will have the single highest duration across the index at 7.03 years, with an above average yield-to-maturity at 7.09%, a JP Morgan note said.
FPIs’ G-Sec purchases cross $10-billion mark
Nine months after JP Morgan announced the inclusion of Indian government debt in its emerging markets index, foreign portfolio investors have increased their ownership of sovereign bonds by over $10 billion. The influx of funds is expected to continue as India's index weightage grows.
Rate cut hopes, inclusion in JPM index fuel ‘FOMO’ trades in GSecs
Indian sovereign debt players bond with bonds following Mint Road's move to decelerate rate-increase drive and JPMorgan's recognition. CCIL data shows a 40% increase in monthly trades, reaching ₹8.6 lakh crore in 2023.
FPIs take out Rs 14,800cr from equities in Jun on poll results, attractive Chinese stock valuations
Foreign investors withdrew nearly Rs 14,800 crore from domestic stocks in the first week of this month, influenced by India's Lok Sabha election results and attractive valuations of Chinese stocks.
Insurers lap up GSec derivatives to manage liabilities
Global funds and insurers are showing strong demand for Indian government bonds, particularly ahead of their inclusion in a JP Morgan index. Insurers are increasingly interested in Bond Forward Rate Agreements (Bond-FRA) to manage long-term liabilities, with significant trading activity reported by Clearing Corporation of India (CCIL).
HUL, Dabur among 25 stocks in JP Morgan’s ‘overweight’ India portfolio after election results
JP Morgan categorized 25 stocks as 'overweight' post the Lok Sabha election results. It recommend positioning for potential spot-up and volatility-down scenarios
Water scarcity an opportunity to solution providers: JP Morgan
Water scarcity in India presents opportunities for companies offering solutions, according to a J.P. Morgan report. India has 18% of the world’s population but only 4% of its freshwater. Key companies like Larsen & Toubro, Voltas, and Thermax are improving water efficiency and availability. The agriculture sector faces high groundwater exploitation, with the north-west region at critical risk. Additionally, 40% of power plants are in water-scarce areas, stressing the need for innovations like solar PV to reduce reliance on freshwater.
JP Morgan maintains overweight rating on LIC post Q4 results, sees 29% upside
JP Morgan maintains 'Overweight' rating on LIC post Q4 results, setting target price of Rs 1,340. LIC's market share growth and strong earnings drive stock performance.
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