Coming as its steepest downgrade ratio since 2020, Jefferies India note recently lowered FY25 earnings estimates for nearly two-third of the companies under its coverage that have come out with September quarter results so far.
Jefferies (Photo:Facebook)
Coming as its steepest downgrade ratio since 2020, Jefferies India note recently lowered FY25 earnings estimates for nearly two-third of the companies under its coverage that have come out with September quarter results so far.
It highlighted that the earnings downgrades have been a result of a cyclical slowdown in the economy, resulting in a cut of FY25 EPS estimates for 63 per cent of the 121 companies under the coverage that have reported results.
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Jefferies now projects earnings of Nifty 50 companies to grow at only 10 per cent for the fiscal.
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Further, Jefferies’ updated India strategy takes a cautiously optimistic view on equities, observing that supply has started to match the strong domestic demand.
In recent months, equity supply has increased to roughly $7 billion per month, totalling around $60 billion year-to-date (YTD).
On a longer term, it remains bullish on India, and expected a $10 trillion equity market capitalisation by 2030.
Recently, on the US election results, Jefferies said Donald Trump’s winning the second term as the US president is the greatest political comeback in American history.
Taking a note of ‘The comeback kid’ and ‘animal spirits’, it said the initial reaction of the financial markets to Donald Trump’s decisive victory in the electoral college, as well as more surprisingly in the popular vote, is what GREED and fear expected — the US dollar is up, the stock market is up and the US treasury bond market is down.
It also highlighted that Trump championed Bitcoin during his campaign, including establishing an official US Bitcoin strategic reserve.
Trump said he would establish a national ‘stockpile’ of Bitcoin using the Bitcoin the US government currently holds that was largely seized in law enforcement actions.
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