Latest news with #AmishShah
Time of India
4 days ago
- Business
- Time of India
India crowned top destination for stock compounders, says BofA; lists 9 structural themes
In a powerful long-term endorsement of India's equity markets, Bank of America ( BofA ) Securities has ranked the country as the world's top hunting ground for stock compounders , driven by a confluence of nine structural growth engines. While bullish on India's decade-long trajectory, the brokerage struck a cautious tone on near-term market prospects, citing elevated valuations and global risks. India is expected to be the fastest-growing large economy in 2025 and 2026, according to the International Monetary Fund. Over the last three decades, the Indian market has delivered USD-based returns of 7% CAGR—second only to the US. More significantly, these returns have been powered by earnings growth rather than valuation expansion, setting India apart globally. Bank of America's strategist, Amish Shah said the confluence of nine structural drivers is likely to position India for sustained economic and corporate earnings growth. He emphasized that India ranks as the top country globally in providing a high number of stock compounders, and that this trend is likely to persist. 'Hence, India ranks as the top country globally to provide high number of stock compounders, a trend we expect to continue. However, we are cautious on markets near term as valuations seem full & markets are ignoring risks of likely slowing global growth,' Shah wrote in a strategy note. Shah highlighted that India's outperformance is built on strong fundamentals, regulatory consistency, corporate execution, and a vast domestic consumption base. With India projected to become the world's third-largest economy this decade—surpassing Germany—the macro setup offers a compelling backdrop for equities. Also read | Smallcap stocks are doubling money like it's 2024 once again. Should you jump in? Nine Structural Themes Fueling India's Growth Outlook BofA outlined nine long-term themes that make it constructive on India's equity outlook: Infrastructure Boom: India is on track to add more infrastructure between FY15 and FY30 than it did in the previous 65 years, with a projected 3.25x economic multiplier according to an RBI study. Productivity Gains: Improvements in logistics, energy efficiency, and capital-output ratios suggest a productivity renaissance akin to the 2003–07 boom years. Digitization: With more than 900 million internet users and ultra-low data costs, India has witnessed a 140x surge in digital transactions in eight years, fueling a fast-growing digital economy and the fourth-largest venture capital ecosystem globally. Financialization: Over 90% of Indians now have bank accounts, up from 35% in 2011, but formal credit penetration remains low at 11–13%, providing significant room for expansion in financial services. Household Savings Strength: Households contribute over 60% to the national savings pool. Improving balance sheets and easing inflation are expected to further support domestic capital formation. Discretionary Consumption Shift: As per capita income nears $5,000 by 2030, the share of discretionary consumption is expected to rise to 43%, up from the current 36%, driven by premiumization and a growing middle class. Formalization Push: Reforms like GST, UPI and e-invoicing are driving growth in the formal sector, broadening the tax base and creating scale benefits for organized players. Improving External Position: PLI schemes, labor reforms, and infrastructure investment could transform India from a current account deficit country into one running surpluses. Decarbonization Momentum: India has already invested $216 billion in clean energy over the last decade, and is expected to deploy another $270 billion by FY30. Market Outlook: Long-Term Conviction, Short-Term Caution Despite this strong structural case, BofA remains cautious on India's equity markets in the short term. It expects GDP growth to come in at 6.3% in FY26, slightly below the Reserve Bank of India's 6.5% forecast, citing only a shallow revival in GDP, capex, and consumption. The brokerage has retained its year-end Nifty target at 25,000, indicating no further upside after the recent rally. It flagged seven emerging risks that warrant caution on large caps and broader markets, although specifics were not detailed. BofA's stance is clear: India's long-term equity story is underpinned by deep structural change and remains one of the most attractive globally. But in the near term, stretched valuations and global headwinds demand a more conservative approach.
Business Insider
5 days ago
- Business
- Business Insider
Bank of America Securities Sticks to Its Sell Rating for Cummins India Limited (CUMMINSIND)
In a report released yesterday, Amish Shah from Bank of America Securities maintained a Sell rating on Cummins India Limited (CUMMINSIND – Research Report), with a price target of INR2,491.00. The company's shares closed last Friday at INR3,268.10. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Shah is ranked #4964 out of 9553 analysts. In addition to Bank of America Securities, Cummins India Limited also received a Sell from Jefferies's Lavina Quadros in a report issued yesterday. However, on the same day, Nomura maintained a Buy rating on Cummins India Limited (NSE: CUMMINSIND).
The Guardian
25-03-2025
- Business
- The Guardian
Napster, now a streaming service, sells for $207m to Infinite Reality
A brand that was notoriously connected to music piracy before re-emerging as a subscription music service, has been sold to Infinite Reality for $207m. The tech startup announced on Tuesday it had bought Napster in hopes of transforming the streaming service into a social music platform where artists can connect with fans and better monetize off their work. 'The internet has evolved from desktop to mobile, from mobile to social, and now we are entering the immersive era. Yet, music streaming has remained largely the same. It's time to reimagine what's possible,' said Napster's CEO, Jon Vlassopulos, in a blog post. Sign up to TechScape A weekly dive in to how technology is shaping our lives after newsletter promotion Among its plans to update Napster, Infinite Reality said it would create virtual 3D spaces that will allow fans to attend concerts, and give musicians or labels the ability to sell digital and physical merchandise. Artists will also receive a wider range of metrics and analytics to better understand the behavior of platform users. 'We can think of no better use case for our technology than putting it in the hands of music artists who are constantly pushing the boundaries of what's possible,' said Infinite Reality's chief business officer, Amish Shah. Napster was launched in 1999 by Shawn Fanning and Sean Parker and quickly became the first significant peer-to-peer file-sharing application. It shuttered in the early 2000s after the record industry and popular rock band Metallica sued over copyright violations. Rhapsody later bought the brand in 2011 and relaunched it as a music streaming service.
Reuters
20-03-2025
- Business
- Reuters
Foreign selling in Indian stocks continues unabated in first half of March
March 20 (Reuters) - Foreign selling of Indian stocks continued in the first half of March, with information technology and consumer goods accounting for a significant share, amid concerns over the health of the U.S. and Indian economies. Foreign portfolio investors (FPIs) net sold Indian stocks worth $3.5 billion during the period. IT stocks accounted for 69.34 billion rupees ($803 million) of the selling, while consumer stocks worth $591 million were offloaded, exchange data showed on Thursday. FPIs have sold Indian shares worth $28 billion between October and March, which has triggered a 13% fall in Nifty 50 from record high levels hit on September 27, 2024. The IT index (.NIFTYIT), opens new tab fell 3.2% during the first half of the month, compared to the benchmark Nifty 50's (.NSEI), opens new tab 1.2% rise. The IT index confirmed a bear market on March 12, which is defined as a decline of 20% from the recent peak. Worries of a potential slowdown in the U.S. economy and inflationary concerns amid President Donald Trump's erratic tariff campaign have dimmed the prospects of a near-term recovery in earnings in the sector, said two analysts. India's IT sector derives a large chunk of revenue from clients in the United States. Earlier in the month, Jefferies double-downgraded India's IT sector to "underweight" from "overweight," citing high valuations and U.S. economic risks, while Citi said it is too early to be constructive on IT as recent U.S. data suggested a tough near-term outlook. Meanwhile, recent domestic policy measures such as the government's cut to income tax and the Reserve Bank of India's interest rate cut and actions to boost liquidity failed to ignite investors' interest. The FMCG index rose 2.3% in the first half of March, after dropping 23% in the previous five months. "Benefits of subsidies to low-income households and the tax-cuts for mid-income households are well understood, the sector lacks incremental triggers and is expensive on relative valuations compared to other sectors," said analysts led by Amish Shah of BofA India. Among sectors, financials, oil and gas stocks have seen the highest foreign outflows since October, followed by consumer and auto stocks. ($1 = 86.3520 Indian rupees)
