Analysts say gains in the dollar index indicate emerging markets like India, which have seen a run-up since March, may be vulnerable to a sell-off.
Fund managers say that PB ratio needs to be looked at in the context of return on equity. For example, a company with a high RoE will always command a higher PB ratio and vice versa.
Autos is the only sub-segment where data have improved substantially in the past three months. Several other indicators such as cement and power remain weak.
The target price implies a downside of 39.2% from current levels. On Tuesday, the stock closed at Rs 4,015.25 on the BSE, up 0.16% from the previous close.
Credit Suisse said the brokerage has lost ground on two counts-the Hanjin bankruptcy and the Hyundai CIX service drop.
The Paradip ramp-up should reduce the gap in marketing and refining volume by 10ppt even after marketing growth, it noted in a report dated Monday.
“If the Fed hikes rates, it will lead to more outflows from emerging markets like India,” said Nischal Maheshwari, head-institutional equities at Edelweiss Securities.
HSBC sees the CPI inflation remaining in a comfortable range - undershooting the Reserve Bank of India's 5% target of early-2018, and averaging 4.75% over the next 12 months.
HSBC said the revenue miss was driven by slippage of a large deal in India to the third quarter and overall weakness in the retail business which declined 3.1% sequentially in the quarter.
“The gap between broad market performance and share of profits suggest that mid-caps may be pricing in an earnings recovery,” said Morgan Stanley.
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