Will higher crude prices spook this bull market
The twin tailwinds of low bond yields and cheap crude oil that were driving equity markets in India, despite lacklustre corporate earnings, are now receding.
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buy canada goose jacket The earnings canada goose uk outlet yield for a broad portfolio of 340 BSE 500 index companies is down 120 basis points (bps) in the last 12 months, while the yield on 10 buy canada goose jacket year government bonds is up 100 bps and 16 bps in India and the US, respectively. buy canada goose jacket
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canada goose coats The BSE 500 firms’ combined net profit (on TTM basis) is up two per cent in last one year against a 35 per cent rally in stock prices. canada goose coats
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canada goose black friday sale “While canada goose uk black friday the former lowered our imports, boosted corporate margins,” Sinha points out, “the latter supported capital inflows. Now these twin tailwinds are receding and it will weigh on equity prices unless corporate earnings pick up strongly from here on.” canada goose black friday sale
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The country’s current account deficit improved from a record low of 6.5 per cent of gross domestic product in September 2012 to 0.1 per cent canada goose coats of gross domestic product in March 2016 quarter.
This helped the rupee dollar exchange rate to stabilise as also aided capital inflows into the country.
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