The 30-share BSE Sensex pack soared 720 points to hit an all-time high of 73,288.78 and the broader NSE Nifty index moved over 187 points to touch a record peak of 22,081.95.
"Vinay Jaising says: As far as financials are concerned, it would be business as usual which is superb loan book growth whatever numbers, we have seen of loan book growth coming out so far have been between 15% and 20% apart from maybe BOB, which was at about 13%. The IT sector will not grow the revenues of the sector as far as this quarter s earnings are concerned."
We believe one should not look at indices, before concluding Indian markets are expensive. The additions to indices specially in large cap have mostly been costlier stocks making their past absolute valuations un-comparable. Indian seems to be in a Goldilocks situation with High Growth of corporate earnings, an ever growing macro economy contributing to ~15% of worlds incremental growth and witnessing start of a Capex cycle to help India become a manufacturing hub for the world. Themes we like are a) Power, b) Water c) Defense, d) Railways, e) ER&D and f) Chemicals.
Vinay Jaising says: Capex investments have grown 5.6x in the last decade and now account for 3.3% of the GDP (not including PSU spend or state spend). In absolute terms, we expect over 30% growth YoY in capex expenditure by the government. Rural investments, which were a bit lower in the last two years, should get a fillip as well in both the budgets of at least 10% YoY.
Alok Industries share price: Bourses BSE and NSE have put the securities of Alok Industries under the short-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.