Date post: | 18-Dec-2014 |
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KNOWLEDGE PLUS For Wealth …..
VALUE PLUS- The Family Office
From Research Desk
Last week at the Financial Markets!!!
• SENSEX down by 581.79 points (-2.87%) and closed to 19704.33 at end of the week
• (FIIs) were net buyers in equity segment leading to net inflow of Rs. 6525.10 Crore
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News Impact
• US FED chairman Ben Bernanke said that US central bank could slow down its asset purchase program in the next few months.
• In short term, profit booking could be seen in “risk-on” assets.
• Inflation will reduce. • Medium term “risk on” asset will out
perform as economic growth will recover. • IT sector will be benefited.
• Rupee made its 8 month low to 56.02 level.
• Imports will be costlier. • Exporters will get an advantage of rupee
depreciation. • Current account deficit will increase.
Last week at the Financial Markets!!!
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Price Performance of Different Asset Class
There was a concern that if stimulus
measures are eased in US, the consistent
liquidity being provided by the foreign investors
will get impacted.
Next Week in the Financial Markets….?
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• Q4 results of the following companies will provide the next impact :
Coal India, Sun Pharma, Cipla, Wockhardt, Gail India,Power Grid Corp, MCX.
• January-March quarter GDP data is expected to be released on May 31st 2013.
• Derivative contracts will expire on May 30th 2013.
Hot Topic of the Week
Japan’s Economy Key Economic Parameters
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• Japan is one the leading export country in the world.
• This week Japan’s stock market fell more than 7% in a single day, G-Sec Yield increased, and YEN appreciated. This triggered fall in Indian and other world markets also because all the economies and their financial markets co-relates with each other.
• So it becomes important to understand the economic parameters of Japan at this point of time.
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Hot Topic of the Week
Economy faces continuous problem of deflation
Inflation Deflation Trend
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SOURCE : WWW.TRADINGECONOMICS.COM
Money Supply by Bank of Japan
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Money supply stood all time high at
8,44,548 JPY Billion in April 2013
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After 34% depreciation in YEN in the last few months, YEN appreciated against the
dollar last week. This resulted in sell off in equity
markets across Asia.
USD/YEN Pair
Volatile GDP Growth Rate
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Export Price Index
• Currently, historical average price of export is at 140 level. • All time high level was 207.30 in October, 1982 • A record low level was 94 in January 2012.
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10 year Government Bond
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Near all time low
level, possibility of change in yield curve
Yield increased after FED meeting.
Long term yield chart
Short term yield chart
Stock Market-NIKKEI 225
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Stock market rallied 52% in last 1 yr because of huge money supply by
bank of Japan
Conclusion
• After years of deflationary scenario, export oriented Japan’s economy may be going through a structural change and this will be reflected in next few quarters, especially on back off increase export prices index (following by the huge depreciation in YEN).
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Research Desk
@ VALUE PLUS - The Family Office
Office: (0265 -2324600,6629800) Email: [email protected] Website: www.valueplusinv.com