![]() “It is increasingly clear that in a world where capital flow is constrained by geopolitical factors, Indian equities offer an attractive proposition, particularly to Western investors who are under pressure to diversify, if not minimise, their exposure to China,” states a Gavekal Research report. However, some experts also believe that despite such high valuations, the Indian market continues to remain attractive to foreign investors. Renewed hawkishness by the central banks of advanced economies, tepid consumption growth, upside risks to inflation due to higher food prices, and weakness in global trade are some of the key risks flagged by the experts. The reports from ICICI Securities and Systematix have cast doubts on the sustainability of the rally, whereas brokerage reports from CLSA and Kotak Securities have expressed concerns about the high valuations. The higher valuations and continuing market rally have raised risks. The premium of the MSCI India Index over the MSCI Emerging Markets Index stood at 73.6% compared to the past 10-year average of 55.1%, according to Reuters-Refinitiv data. The recent broadband rally has swelled the domestic market valuations, with the MSCI India Index 12-month forward PE at 21.2 times, which is at a 15% premium to its 10-year average of 18.5 times. The returns are based on 18 July 2023 values. The mid-caps and small caps outperformed the large caps with 22.3% and 25.5% returns, respectively. In 2023-24, the benchmark BSE Sensex and Nifty-50 delivered over 13% returns. The improvement in earnings momentum and favourable macros are helping market benchmarks that are scaling new highs. “Over the next 12 months, the aggregate earnings are expected to expand by a mid-double-digit rate,” says Oberoi. Looking at the overall earnings growth, Siddharth Oberoi, Chief Investment Officer at Prudent Equity, believes that the domestic demand-focused businesses will support the future earnings growth of India Inc. The report expects Nifty-50 to post an earnings CAGR of 17% over 2022-25. In the course of its operations, Mitsui adopts measures to control these and other types of risks, but this does not constitute a guarantee that such measures will be effective.The sustainability will be supported by factors like moderating inflation, narrowing of CAD, range-bound crude prices, stable exchange rates and expectations of strong earnings growth in the future. These include, but are not limited to, (i) change in economic conditions that may lead to unforeseen developments in markets for products handled by Mitsui, (ii) fluctuations in currency exchange rates that may cause unexpected deterioration in the value of transactions, (iii) adverse political developments that may create unavoidable delays or postponement of transactions and projects, (iv) changes in laws, regulations, or policies in any of the countries where Mitsui conducts its operations that may affect Mitsui's ability to fulfill its commitments, and (v) significant changes in the competitive environment. ![]() You should be aware that a number of important risk factors could lead to outcomes that differ materially from those presented in such forward-looking statements. These statements are presented to inform stakeholders of the views of Mitsui's management but should not be relied on solely in making investment and other decisions. (“Mitsui”)'s corporate strategies, objectives, and views of future developments that are forward-looking in nature and are not simply reiterations of historical facts. This website contains statements (including figures) regarding Mitsui & Co., Ltd. Participation in Initiatives / Evaluation by SocietyĬompany Information / Investor Information ![]() Management Foundation (PDF 2.53MB)ĭirectors / Audit & Supervisory Board Members Portfolio Management and Financial Strategy Progress of Medium-term Management Plan 2023 Mitsui's Strengths as a Foundation for Challenge and Innovation ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |