Tag: global economy

The global economy faces mainly four key uncertainties including a downturn next year, according to economic experts in a signal that policymakers will be in firefighting mode for longer. They listed the severity of the downturn, inflation’s trajectory in the medium term, the impact of geopolitics on markets, and climate risk on portfolios as the main risks to the global outlook. Singapore, like many economies worldwide, is grappling with inflation that’s yet to peak and a tight labor market that still is creating headaches for businesses short on workers as they emerge from the pandemic. Medium-term inflation is likely to be higher for longer, rather than recent benign price gains, and the era of cheap money and cheap labor are most likely over, say experts. Read more

Tata Consultancy Services, Infosys, Wipro, and HCL Technologies, etc., India’s leading information technology (IT) services companies, are the flavor of the season on D-Street. The IT industry valuation premium over the broader market is now at its highest level in more than a decade as investors continue to accumulate the shares of top IT companies and go underweight on at-risk sectors, such as banking, oil and gas, metals, and even fast-moving consumer goods companies (FMCG). The BSE IT Index is currently trading at a trailing price-to-earnings (P/E) multiple of 34.3x — nearly 29 percent higher than the benchmark BSE Sensex P/E multiple of 26.6x. In contrast, till six months ago, the IT index was trading at a discount to the benchmark index. This is the first time in five years that the IT index valuations are higher than the benchmark indexes. Read more