13.09.2012 - Commodities are India's Achilles' heel: Nick Paulson-Ellis
It has been a liquidity-driven rally for global equity markets in 2012. However, the Indian markets seem to have been stuck in a range. Nick Paulson-Ellis, country head (India), EspĂ­rito Santo Securities, says breaking out of this range will require a turn in the earnings cycle. Most emerging markets, except Mexico, are trading at or below their five-year average price-to-earnings (PE) multiple, he says. Regulatory uncertainty, illegal mining issues, slowing domestic consumption, Chinese economy, etc, have all conspired to put the resources sector between rock and a hard place. However, we take a bottom-up approach and have selective buy ratings on the stocks like JSW Steel and JSPL, where we recognise the issues, but we now see value...............................................Full Article: Source
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