12,123.7516.85
Stock Analysis, IPO, Mutual Funds, Bonds & More

Bearish Goldman of September 17 was super bullish on August 19

The US-based firm has been overweight on Indian market since 2014.

Sep 19, 2018, 08.20 AM IST
0Comments
BCCL
BSE-BCCL-2
The brokerage has cited less favourable risk-reward due to stretched valuation to support its decision to revise weights.
Could a structural view of a country change in just one month? This has happened with Goldman Sachs’ views on Indian equities. It had released a report titled ‘Plenty to Play’ on August 19 where it had maintained a positive stance on India, citing it as one of the few countries on a cyclical upswing. Therefore, its latest report on September 17 downgrading India to “market weight” from “overweight” came as a shocker.

The brokerage has cited less favourable risk-reward due to stretched valuation to support its decision to revise weights. Over the past month, the priceearnings premium of Indian market over the emerging market has remained unchanged at 68 per cent while the risk premium of Indian equities rose five basis points to 4.49 per cent, according to Bloomberg. The ‘Plenty to play’ was written by Maximilien Raab and Eliot Camplisson, while the rating downgrade report was authored by Sunil Koul and Timothy Moe. The US-based firm has been overweight on Indian market since 2014.

Goldman snip 1



Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service