Foreign investors see Indian equities as defensive bets

BSE’s 30-share Sensex trades at 17.42 times one-year forward earnings. In comparison, the MSCI EM Index trades at 13.49 times one-year forward earnings, according to data from Bloomberg. Photo: HT

BSE’s 30-share Sensex trades at 17.42 times one-year forward earnings. In comparison, the MSCI EM Index trades at 13.49 times one-year forward earnings, according to data from Bloomberg. Photo: HT

Mumbai: Indian equities are now being categorized as defensive bets, thanks to their ability to be resilient in tough times, but the gush of flows has pushed valuations in the expensive bracket, according to market analysts.

“That is one adjective I increasingly hear—India is a defensive market. It is viewed as a defensive-cum-growth market as well, because there are enough companies that are growing at 20%-plus,” Abhinav Khanna, managing director and head of equity at Citigroup Global Markets India Pvt. Ltd, said in an interview on Thursday, referring to his conversation with his foreign clients.

Khanna pointed out that some of the large private sector banks in the country were reporting 20% growth for some quarters and cement companies too were faring well.

“There are so many sectors, and there are so many companies that are defensive because they have got good balance sheets, and also good management. So people see comfort in that, as opposed to investing in other countries where there may be political instability or countries which might have a very commodity-heavy bias,” said Khanna.

“India is a very balanced market in that respect, and that is what gives it the defensive quality,” added Khanna.

His views were echoed by foreign institutional investors (FIIs) as well.

“Indian equities are driven by long-term domestic factors, and not so much by short-term global factors. This makes India a defensive markets within a GEM [global emerging markets] context,” said Maarten Jan Bakkum, senior strategist [emerging markets], NN Investment Partners, in an e-mail from The Hague, Netherlands. The asset management firm manages £190 billion of assets.

Bakkum warned that on the flip side, the high valuations mean that the market is always vulnerable in case of a negative surprise.

Other foreign asset managers shared the view.

“India is my long-term favourite among the big Asian markets, but considering current valuation, I see currently more upside in smaller Asian markets like Philippines, Vietnam and Pakistan,” Helsinki-based Hertta Alava, director of emerging market funds at FIM Asset Management Ltd, said in an email on 27 July.

“When looking at all emerging markets, including commodity producers, I consider India quite defensive market which should outperform during uncertain times. Russia and Brazil have outperformed this year, but oil price is coming down again, so further outperformance might be limited,” Alava added.

FIIs have been net investors in Indian shares for 27 sessions in a row, the streak last seen in 2013, when they were net buyers of Indian shares for 31 trading sessions, starting from 3 October 2013 to 20 November 2013. Year-to-date, they have pumped in a net of $5.3 billion in Indian shares.

That said the streak of continuous inflows and the fact that earnings upgrades aren’t coming by are making the valuations stretched, a concern that was widely shared.

According to data from Bloomberg, BSE’s 30-share Sensex trades at 17.42 times one-year forward earnings. In comparison, the MSCI EM Index trades at 13.49 times one-year forward earnings.

“While India’s absolute valuations are looking stretched, valuation premium relative to other EMs has stayed intact owing to strong rally in most other EMs too. At current levels, the market [MSCI India Index] is trading at around 18 times one-year forward earnings, this is about one standard deviation above a 10-year mean,” Khanna of Citigroup said.

“A lot of people are asking about possibilities of earnings upgrades given the level of valuations, and the concern is that the market is clearly factoring something like a mid-teens earnings growth,” Khanna said, referring to his foreign clients.

Bakkum of NN Investment also pointed that valuations of Indian markets remain stretched, compared with other emerging markets and also compared with India’s market history. Sensex and MSCI India Index have had a five-year historical average of 15.59 times and 16.03 times price-to-earnings, respectively.


Oh Snap! Snapchat’s Memories Feature Now Lets You See Old Photos

See Old Photos and Videos with Snapchat Memories

Oh snap! Snapchat wants you to hold on to your photos and videos for a little longer.

The new Snapchat Memories feature is a shareable and searchable archive of snaps. The feature allows you to save photos you take within Snapchat’s server.  The company, in its press release describes Memories as “a personal collection of your favorite moments that lives below the Camera screen.”

Swipe up from the camera to open Snapchat Memories and easily find your saved stories or snaps using keywords. Type in words like “cat” or “watch” and all relevant searches will automatically appear.

Memories also contains tabs for viewing just stories, snaps or your complete camera roll. To enable a new interaction, tap and hold the snap. You can also edit the snap adding timestamps and geofilters even if you are far from the time and place they were originally taken. You can then share that older stamp to your current story where it will appear with a timestamp and a white frame to indicate that it is older content.

Snapchat Memories Will Help Marketers Create Brand Stories

Though the new Memories feature affects all users it will be a real boost for small business owners or other marketers using Snapchat. his is because the new feature makes it pretty easy to string together multiple older photos to better create a new story for your brand.

There is no doubt that Snapchat Memories is one of the biggest changes that the company has made to its wildly popular app. Snapchat’s 150 million daily users leverage the app to film major milestones in their lives.

This includes, but is not limited to, family vacations, engagements, graduations, weddings and much more. These are moments that you want to remember and having them on your camera roll is risky as you can lose your phone together with your memories.

For marketers, snaps and stories that have helped you establish your brand’s identity are now easier to retrieve than if you took them using your smartphones regular  camera.

Even if you save your photos, finding specific shots buried under an avalanche of other images can be daunting when trying to create cotent about your brand via social media. However, the fact that you can quickly locate your photos makes this app a great tool.

Any snap you save in Memories is saved to Snapchat’s servers, so you can quickly access it from any device where the app is loaded.


Intuit helps SMBs through Kiva Zip Peer to see Lending

kiva zip peer to peer

Kiva, a non-income micro-investment platform, has teamed up with Intuit, the software agency in the back of Quicken, Quickooks and TurboTax, to offer small commercial enterprise owners with short capital at the clicking of a button.
Having obtained a $50,000 donation from Intuit’s monetary Freedom basis, Kiva may also now be capable of fund as much as 500 small companies each month via the Kiva Zip peer to peer lending platform.
The contemporary initiative is every other first-rate step closer to removal of monetary boundaries andit’ll actually assist improve the monetary consequences for small enterprise owners and marketersseeking to increase their business.
individuals who don’t qualify for Intuit’s conventional mortgage programs are encouraged to create a profile on Kiva to elevate funds for their commercial enterprise. The minimal borrowable amount via the Kiva Zip peer to look lending platform is $five,000 and is going as excessive as $10,000.
Kiva, a veteran within the micro-lending commercial enterprise, released the Kiva Zip peer to see lending platform across the U.S. in 2014, partnering with corporate companions and town governments to crowdsource approximately $10 million in interestloose loans.
we’re excited about our partnership with Kiva Zip and to provide small groups the crucial capital theyneed to start and develop their agencies,” Jeffrey Kaufman, Intuit’s enterprise chief of QuickBooks Financing defined in a TriplePundit put up. “This platform serves a phase of small groups who formerly had no, or very limited opportunities to get the funding they wanted. additionally, the Intuit financialFreedom foundation donation is one manner Intuit is helping small agencies across the kingdom to givethem a risk to thrive.”
Kiva permits people to lend small loans, as low as $25, to entrepreneurs on line. The enterprise lists allthe ones in need, posts their pics and tells their stories. prospective lenders can then pick out the entrepreneur that they wish to assist; additionally quoting the quantity they desire to lend them.
kiva zip peer to see lending platform
There are no intimidating interviews or credit score test required. as an alternative, Kiva is predicated on “credit and character” and calls for that borrowers start by inviting buddies and family to launchfundraising efforts. Upon attaining a certain threshold, the enterprise is then featured in Kiva’s onlinecommunity where it is able to get extra price range. enterprise proprietors are given the possibility toset up conceivable fee terms. when they end repaying their loans, they are able to then follow forgreater.
As banks and other conventional financing institutions preserve to restrict get admission to to capital,sites like Kickstarter, GoFundMe and Kiva will maintain to provide small commercial enterpriseproprietors with funding opportunities that are a long way more accommodating.
we are thrilled via our partnership with Intuit and its basis,” said Jonny price, senior director of Kiva. “Kivadebtors have an 89 percentage compensation fee, which means that when the loans are repaid, we are able to recycle the muse’s funding to match additional loans, in addition maximizing the impact we make for small companies.”
This is not the primary time that the two groups are operating collectively. lower back in 2010, the 2agencies introduced growth of an attempt to seed small enterprise increase with an competitivematching application.

large Banks See Spike In Small Biz Lending, Says Biz2Credit

biz2credit october

Small enterprise loans are becoming more appealing in these days’s enterprise climate as indicatedthrough the Biz2Credit Small business Lending Index, October 2015.
large banks, with $10 billion or more in assets, are increasing the proportion in their typical loans to small organizations.
“As hobby costs begin going up, we count on in addition increase within the large Banks urge for foodfor small commercial enterprise loans. large Banks also are warming up to shop for greater loans from themarketplace creditors,” said Rohit Arora, CEO of Biz2Credit.
even as big banks are growing the share of their standard loans to small corporations, institutionallenders (consisting of credit price range, own family workplaces and hedge price range) have alsoupped their game on this vicinity with a 0.2 percent enhance. This marks the thirteenth consecutive month of increase in small business mortgage popularity of this category of lender.
Small banks, though, are still mired within the mud. Their rate of mortgage application popularity ofsmall enterprise remained constant for the month of October 2015 at forty nine percent, that’s similar toSeptember’s.
“Small Banks had been gradual to evolve to new approaches of lending in the small enterprise area,especially incorporating online platforms, and for this reason their approvals have started to slip down,”said Rohit Arora, CEO of Biz2Credit.
Biz2Credit calculates these statistics monthly with the aid of analyzing 1000 loans completedthroughout each month.
Biz2Credit became founded in 2007 and is backed through Nexus task companions. It has additionallyformed a partnership with clients financial institution, announced October 2015, which gave it a brand new platform in an effort to allow the financial institution’s small enterprise clients to apply for loans,add files, etc. for agencies that have operated for over six months.
Biz2Credit has end up a frontrunner within the on line marketplace for small enterprise funding. It hasorganized over a thousand million in funding for lots of small agencies during the U.S.

Apple iPhone SE unveiled; India likely to see May roll-out

Apple, iPhone SE,

Apple on Monday announced its iPhone SE, a 4-inch (10-cm) smartphone that it claims is the most powerful and cheapest, priced at $399 (approximately Rs 30,000) and could potentially hit the Indian market by May. This represents Apple’s second bid for the crowded mid-tier market after an unsuccessful foray three years ago.

The new phone, with Apple’s vaunted A9 chip, doubles the speed of Apple’s previous attempt at an entry-level phone, the 5S, launched in 2013. It also runs Apple Pay and comes in the wildly popular rose gold colour.

Shares of Apple were down about half a per cent at $105.41 in early Monday afternoon trade.

Apple in India continues to see higher sales of the older generation iPhone 5S, first launched in September 2013, and the new device could potentially bring more users for the first time onto the Apple ecosystem.

Apple CEO Tim Cook said that the 4-inch smartphone has brought in more first-time users in countries such as China. Apple would launch the phone in a few countries, including China, by March-end and the phone would likely to be launched with 100 other countries in May.

While maintaining that Apple has over one billion devices across the world, Cook said the company has built a recycling robot Liam that would use parts of iPhones to build products such as solar panels.

“We built the iPhone for you, our customers. And we know that it is a deeply personal device,” Cook said at Apple’s leafy Cupertino, California headquarters. “For many of us, the iPhone is an extension of ourselves.”

Cook, in his opening remarks at the Apple Special Event, defended the company’s focus on privacy.

He reiterated that it is bad to create “back doors” even if it is for the government, adding that Apple “will not shrink from that responsibility.”

“A month ago we asked Americans across the country to join in a conversation. We get to decide as a nation how much power the government should have over our data and over our privacy,” Cook said.

Cook’s remarks were the latest in a battle with the US government over efforts to compel Apple to help the FBI break into the iPhone of one of the attackers in last year’s deadly shooting rampage in San Bernardino, California. (Article continues below infographic)

Made with


The tech company’s dispute with the US government has become a lightning rod for a broader debate on data privacy. The company is set to square off against the US government at a court hearing on Tuesday, likely the first round in a long legal fight to avoid being forced to decrypt the iPhone.

Apple says that this would be the last product announcement at the Cupertino headquarters, as it plans to shift to a new campus next year.

Apple dropped the price of its smart watch by around $50 and launched a new iPad Pro 9.7-inch aimed at users of Windows PC, which the company claimed was developed before the common use of internet.

Apple iPhone SE
Price: From $399
Display: 4-inch Retina display, 1,136x640p at 326 ppi
Processor: 64-bit A9 processor
Operating system: iOS 9.3
Weight: 113 g
Storage: 16/64 GB
Camera: 12MP iSight/1.2MP
Additional features: Fingerprint sensor, WiFi AC
Apple also introduced a 9.7-inch iPad Pro, cut the price of the Watch by $50 to start from $299 and introduced a new version of its mobile operating system, iOS 9.3. It also unveiled a robot to recycle iPhones, called the Liam