As geopolitical tensions rise around the world, from Syria to North Korea - a veteran market expert Geoff Dennis of UBS shared his outlook on how to trade hereon.
Spot gold rose 0.1 percent to $1,256 per ounce by 0100 GMT. U.S. gold futures climbed as much as 1 percent to $1,260.80 and was last up 0.7 percent at $1,257.
The global brokerage firm believes that the flows could drive markets up in the near-term but has retained the year end Nifty target at 8,800.
A number of foreign investors including HSBC and UBS have stopped issuing controversy-ridden P-Notes as regulatory and enforcement agencies step up their clampdown on misuse of this once-popular instrument among foreigners to invest in Indian markets.
Britain's Vodafone Group said last month it was in talks to merge its Indian subsidiary with Idea Cellular in an all-share deal. The merger will create India's largest mobile operator with about USD 12 billion in sales.
With its flagship wealth management division struggling amid record-low interest rates and a preference among billionaire and millionaire clients for holding cash, 2016 net profit fell to 3.3 billion Swiss francs (USD 3.3 billion) from 6.2 billion in 2015.
That would be a dramatic reversal from last year, when assets under management for bond funds surged 142 percent to 1.93 trillion yuan (USD280 billion), while equity and balanced fund assets dropped 17 percent to 1.99 trillion yuan, according to data from Chinese consultancy Z-Ben Advisors.
The global financial services major said that its Global Emerging Markets (GEM) strategist remain 'overweight' on India, while its Asia Pacific (APAC) strategist has 'neutral' stance.
Companies raised USD 648.9 billion in equity during 2016, against USD 873 billion last year, Thomson Reuters Equity Capital Markets (ECM) data up to Dec. 28 showed.
UBS has retained a buy call on Coromandel International with a target price of Rs 325 as it believes the stock is attractively valued at FY18 PE of 14x.
Kotak's preferred picks are ITC, Britannia Industries, Colgate Palmolive, GSK Consumer and Bajaj Corp.
UBS believes this underscores management's strong due diligence and its strong operational improvement and integration capabilities. It also believes that the global auto component space still offers opportunities for disciplined companies like Motherson Sumi to create further value through mergers & acquisitions.
US economy strengthening in 2017 will have a negative impact on emerging markets (EMs), said Mixo Das of Nomura. However, in the near-term, EMs are likely to underperform the developed markets.
As demonetisation of high-value notes expected to disrupt business activity, earnings from Nifty are likely to take a hit and estimated to grow in the range of 0-9 per cent this fiscal, depending on the pace of economic recovery, UBS Securities India today said.
Revenue from commodity trading, selling derivatives to investors and other activities in the sector slid to USD 3.1 billion between January to September from from USD 4 billion in the same period in 2015, the report published on Thursday found.
The assessment is based on its meeting with policymakers, tax/logistics experts and retailers as part of its two-day GST trip to Mumbai and Delhi, which showed that most are convinced GST will be a reality in 2017 if not from April, then surely from September.
"Underlying macroeconomic uncertainty and geopolitical tensions continued to contribute to client risk aversion and generally low transaction volumes. Lower than anticipated and negative interest rates still present considerable headwinds," it said on Friday. "These conditions are unlikely to change in the foreseeable future."
It said the UBS meeting with over 80 investors in the US, European Union and Asia over the last month showed that nearly all FIIs remain "positive and overweight on Indian markets and appeared to be not worried about the 'overweight' position or about rich valuations".
Former Goldman Sachs banker Matthew Westerman, who took over as head of the Global Banking division in May, has made sweeping changes in the drive to steal market share in a business area where HSBC lags most of its major peers.
The German bank later confirmed Raju's exit in a statement, adding its head of wealth management in North Asia Lok Yim would succeed him with immediate effect. It said Raju was leaving to pursue external opportunities, but gave no further details.
On Thursday, a Bloomberg report raised concerns that a handful of funds are less willing to do business with the struggling firm. The report, citing a source and review of an internal document, said that a small number of the hedge funds that do derivatives business with the German bank have cut their exposure.
In an interview with CNBC-TV18, Ramkumar Krishnamachari, CFO of Just Dial said that the company has taken steps to address growth on core search which has started yielding results.
UBS has also cut FY17/FY18/FY19 earnings per share (EPS) estimates by 15/17/15 percent as incorporating its disappointing Q1 results. It expects a structural shift in Just Dial‘s EBITDA margins as it grows further in the Tier 2-3 cities.
Swiss banking giant UBS said in July that the Swiss authorities had asked it to provide client information following a French request for international administrative assistance in May.
Global brokerage UBS has taken a contrarian line to the general view that the 7th Pay panel award would boost demand, saying the move is expected to drive savings more than consumption.