Despite correction, India remains the second-most expensive Asian market The market turmoil triggered by the West Asia crisis has slightly reduced India’s valuation from its peak levels, yet the country’s stock market still holds the second-highest valuation among Asian peers. According to Bloomberg data, the trailing 12-month price-to-earnings (PE) ratio for India’s 50-stock index stands at 21.77x, lower than the 5-year and 10-year averages of 23.7x and 23.3x. However, Taiwan remains the only Asian market with a higher valuation at 24.6x. India’s PE ratio is still above Indonesia, South Korea, and China, which range from 18.3x to 19.7x. The forward P/E ratio for India’s index is 18.19x, which is below its 5-year and 10-year averages of 19.8x and 18.9x. Japan, however, maintains a higher ratio at 22.30x. Despite these adjustments, industry experts suggest that valuations in India remain elevated compared to its regional counterparts. The Nifty 50 index has declined over 8% since the outbreak of the war in late February, outperforming the 1-6% drops seen in markets like Malaysia, China, Singapore, Hong Kong, and Taiwan. However, Japan, South Korea, and Indonesia experienced sharper declines, with their indices falling between 9-13% during the same period. For years, India has been labeled “pricey” on the global stage, but analysts argue that its valuation is relatively reasonable when viewed through the lens of the country’s economic fundamentals. Deepak Shenoy, CEO of Capital Mind Mutual Fund, noted that India’s valuation has historically remained higher in both bull and bear markets.#india #nifty_50 #west_asia_crisis #bloomberg #sebi
L&T shares fall after second price target cut in two days due to West Asia crisis Shares of Larsen and Toubro (L&T) Ltd. dropped nearly 3% on Thursday, March 12, following a second price target cut in two days. The decline came amid concerns over the ongoing West Asia crisis, which has disrupted business operations and investor sentiment. Despite the drop, the stock showed signs of recovery later in the trading session. Brokerage firm Kotak Institutional Equities revised its price target for L&T shares to ₹4,000 per share from ₹4,350, maintaining a 'buy' rating. The revised target suggests a potential 4% upside from the stock’s previous closing price. This follows a similar cut by UBS, which reduced its target price by nearly 8% earlier in the week. Both adjustments reflect growing caution among analysts about the company’s exposure to regional instability. L&T has remained a focal point for investors and analysts since the Iran-Israel-US conflict escalated on February 28. The company’s significant business presence in West Asia has made it vulnerable to disruptions caused by the crisis. According to JM Financial, L&T’s order book exposure to the region stands at 37%, with 33% of its order inflows coming from the first nine months of the current fiscal year. This highlights the company’s reliance on West Asian markets for revenue. Kotak Institutional Equities warned that the crisis could strain L&T’s near-term financials through multiple channels, including delayed projects and reduced customer spending. The firm noted that the long-term impact of the conflict on regional spending patterns remains uncertain, making it difficult to predict the extent of the company’s challenges.#ubs #west_asia_crisis #kotak_institutional_equities #larsen_and_toubro #iran_israel_us_conflict
Coal India shares rise 4%, emerge as top Nifty gainer amid West Asia crisis: Here's why Coal India shares surged 4% on Wednesday, becoming the top performer in the Nifty 50 index amid growing concerns over the impact of the West Asia crisis on energy markets. The rise in the stock's value has sparked speculation about the broader implications of geopolitical tensions in the region, particularly as global energy prices remain volatile. Analysts suggest that the crisis has heightened demand for reliable energy sources, positioning Coal India as a critical player in the global coal supply chain. The government has reiterated its commitment to ensuring energy security, stating it is fully prepared to address any sudden increase in coal demand. Officials noted that the country's coal reserves stand at approximately 210 million tonnes, sufficient to meet requirements for about 88 days. This level of stockpiling is seen as a strategic move to mitigate potential disruptions in supply chains, especially in light of the ongoing crisis in West Asia, which has raised concerns about the stability of regional energy exports. The surge in Coal India's shares has also been attributed to improved operational efficiency and cost management strategies implemented by the company. Recent reports indicate that the firm has successfully reduced production costs while maintaining output levels, making it more attractive to investors. Additionally, the government's focus on expanding coal-based power generation has further bolstered investor confidence in the sector. Market observers highlight that the West Asia crisis has created an environment of uncertainty, prompting investors to seek out stocks with strong fundamentals and government backing.#government #nifty_50 #west_asia_crisis #coal_india #coal_reserves
Bengaluru Restaurants Threaten City-Wide Shutdown Tomorrow: Why Your Favorite Eateries May Go Dark on March 10 The Bruhat Bengaluru Hotel Owners Association warned on Monday that restaurants across the city could shut down entirely if commercial LPG supply is disrupted. Association president PC Rao accused suppliers of halting gas deliveries, citing a sudden shortage that has left many establishments unable to operate. The crisis stems from the ongoing West Asia crisis, which has led to the suspension of LPG supplies in several areas. Rao stated that around 25 to 30 hotels were already affected on Monday morning as suppliers stopped direct gas distribution. The association’s letter to the central government and local MPs emphasized that the hotel industry is an essential service, providing meals to vulnerable groups such as senior citizens, students, and medical professionals. Without gas, the sector faces severe operational challenges, with oil companies having previously assured a 70-day uninterrupted supply. However, the abrupt cutoff has caused significant disruption. Rao urged authorities to restore gas supply immediately to avoid a citywide strike starting March 10. Restaurant owners confirmed the scarcity of commercial cylinders, with some reporting black-market prices as high as Rs 2,500, though billing remains at Rs 1,958. Diwakar R, a local owner, noted that even with higher payments, cylinders are often unavailable. Meanwhile, Chief Minister Siddaramaiah criticized the central government’s decision to increase LPG cylinder prices by Rs 115 for commercial use and Rs 60 for domestic use, calling it excessive. He separated the issue of supply shortages from the price hike, stating they are distinct concerns.#bengaluru #siddaramaiah #bruhat_bengaluru_hotel_owners_association #pc_rao #west_asia_crisis
