Brussels, Feb 13 (AP) The European Union is downgrading its forecasts for the British economy in the wake of the Brexit vote but paints a more optimistic picture for the bloc as a whole.
Speaking to CNBC-TV18 Sanjeev Prasad, Senior Executive Director and Co-Head of Kotak Institutional Equities, said that recovery may not continue as valuations are on the higher side for a lot of stocks.
Vibhav Kapoor of IL&FS believes the rupee is overvalued and says it has to depreciate for the Indian economy to be competitive.
BNP Paribas estimates that if oil stays around USD 80 a barrel for the next few years, producers in the Gulf, Russia, Latin American and Africa could see their ratings cut by between half a notch and two notches - far more if it sinks to USD 60.
Similar to the poll, the World Bank sharply lowered its forecast for Asia's third-largest economy to 4.7 percent from 6.1 percent for the current fiscal year, citing a slowdown in manufacturing and investment.
Industry experts see worse times for the Indian economy. They expect the Sensex and the Nifty to fall by another 15-20 percent and the rupee may touch 63-65/USD levels.
The Department of Pharmaceuticals on Thursday notified Drug Price Control Order 2013. Once implemented over next few months, prices of 348 essential drugs will come down. Market reaction was mixed with firms like Cipla, Sun Pharma, Ranbaxy, Lupin and Glenmark down 0.5-2%.
Hindustan Unilever shares extended losses and tumbled 5 percent in morning trade on Wednesday after several brokerages cut their rating on the stock following disappointing third quarter earnings and a new pact with its Anglo-Dutch parent Unilever Plc, which will see its royalty payments more than double over next few years.
Goldman Sachs downgrades IRB Infrastructure Developers to "neutral" from "buy" and lowers its sum-of-the-parts target price to Rs 136 from Rs 184. Stock last down 6% to Rs 120.80.
Infosys Ltd rose as much as 1.3% as investors took fresh long positions in the stock which has been battered since its guidance disappointed and led to a slew of downgrades.
Pawan Agarwal of CRISIL Ratings tells CNBC-TV18 that the pressure on asset quality of banks is set to intensify as the effect of rising NPAs fully hits the system.
As many as 188 entities rated by CRISIL defaulted on interest payments during financial year 2011-12 (April-March). According to CRISIL, this is the highest in a single year in absolute terms, and on a relative basis, translates into a 10-year high annual default rate of 3.4%.
Roopa Kudva, managing director and chief executive officer at Crisil tells CNBC-TV18 that she sees the pace of downgrades exceeding the pace of upgrades in the current environment. However, there is no need to press the panic button since she does not see any significant downgrades to companies hereon.
"The market will continue to remain extremely vulnerable," said Dilip Bhat, joint managing director of Prabhudas Lilladher. Erasing possibilities of any strength to be seen in the market, Bhat cautioned that downgrades now seems to be looming large on the Indian shores.
In an interview on CNBC-TV18, Robert Prior-Wandesforde, Head of India & South East Asia Economics, Credit Suisse says he expects the RBI to hike interest rates by 25 basis points at the next credit meeting scheduled on September 16.
In an interview with CNBC-TV18, R Sukumar of Franklin Templeton Investments, spoke about his reading of the market and the road ahead.
Jyotivardhan Jaipuria the head of research with BofA Merrill Lynch, in an exclusive interview with CNBC-TV18 says that he maintains the likely earnings downgraded expected in this earnings season. “There is the interest rates pressure on earnings and hence, we maintain that we will see earnings downgrade,” he says.
The January-March quarter earnings season has entered into the fourth week and several top corporates have already reported their earnings. However, not many have satisfied the street and there have been several ratings downgrades.