1 per cent canada goose coats of gross domestic product in


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.

canada goose clearance sale Crude oil prices have more than doubled from the lows of 2016 pushing up India’s import bill and raising fears of a higher cheap canada goose uk current account and canada goose clearance fiscal deficit. canada goose clearance sale

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

canada goose deals As a result, the current spread of earnings yield over bond yield is the lowest in a decade. canada goose deals

Canada Goose online The current rally started when bond yields and commodity prices began to decline from their record highs in 2013. Canada Goose online

For instance, earnings yield for the BSE500 companies was Canada Goose online around seven per cent in 2013, just a notch below treasury yield in India and nearly three times the treasury yield in the US.

buy canada goose jacket cheap This provided canada goose a big potential upside to investors factoring in the potential rise in corporate earnings. buy canada goose jacket cheap

canadian goose jacket Earnings yield is calculated by dividing a company’s latest trailing 12 months (TTM) net profit by its Canada Goose Jackets market Canada Goose sale capitalisation and canada goose coats on sale shows the potential yield for an investor if the company distributes its canadian goose jacket entire annual profits as equity dividends. canadian goose jacket

Canada Goose Outlet Earnings yield has fallen to a decade low due to a combination of poor earnings growth and higher stock Canada Goose Outlet prices. Canada Goose Outlet

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

canada goose coats on sale “Lower energy prices and benign liquidity (read low interest rates) provided a bonanza to the Indian economy,” says Dhananjay Sinha, head canada goose clearance sale of research, Emkay Global Financial Services. canada goose coats on sale

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

Canada Goose Jackets According to an estimate by Business Standard, the BSE 500 companies saved Rs 15 trillion in the cheap Canada Goose last five years on account of lower energy and commodity prices boosting their profits by 40 per cent Canada Goose Online during the period. Canada Goose Jackets

Canada Goose Parka Nearly 80 per cent of Canada Goose Parka these gains accrued in the last three years when oil prices began to decline in Canada Goose Coats On Sale June 2014. Canada Goose Parka

canada goose Even a partial roll back buy canada goose jacket cheap of these gains would be negative for corporate earnings. canada goose outlet canada goose

canada goose clearance At the macro level, lower crude oil prices provided a canada goose black friday sale revenue bonanza to canada goose store the central government and sharply cut India’s current account deficit. canada goose clearance

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.

cheap Canada Goose “The speed of the tailwinds was the strongest in early 2016 and canada goose uk shop it’s largely uk canada goose gone now,” says G canada goose factory sale Chokkalingam, founder and managing director, Equinomics Research Advisory. cheap Canada Goose

canada goose store “Global growth is on an upswing, which provides further impetus to commodity prices that will translate uk canada goose outlet into greater import bill and higher input cost for corporate houses.” canada goose store.


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