7 November 2017
Market snapshot
Equities - India
Close
Chg .%
Sensex
33,731
0.1
Nifty-50
10,452
0.0
Nifty-M 100
19,808
0.1
Equities-Global
Close
Chg .%
S&P 500
2,591
0.1
Nasdaq
6,786
0.3
FTSE 100
7,562
0.0
DAX
13,469
-0.1
Hang Seng
11,525
-0.7
Nikkei 225
22,548
0.0
Commodities
Close
Chg .%
Brent (US$/Bbl)
64
3.4
Gold ($/OZ)
1,272
-0.3
Cu (US$/MT)
6,937
1.1
Almn (US$/MT)
2,151
-0.7
Currency
Close
Chg .%
USD/INR
64.7
0.2
USD/EUR
1.2
-0.3
USD/JPY
114.1
0.0
YIELD (%)
Close
1MChg
10 Yrs G-Sec
6.9
0.0
10 Yrs AAA Corp
7.7
0.0
Flows (USD b)
6-Nov
MTD
0.1
0.6
FIIs
DIIs
0.0
-0.3
Volumes (INRb)
6-Nov
MTD*
Cash
406
430
F&O
4,005
6,356
Note: YTD is calendar year, *Avg
YTD.%
26.7
27.7
38.0
YTD.%
15.7
26.1
5.9
17.3
22.7
18.0
YTD.%
15.7
9.7
25.6
26.2
YTD.%
-4.7
10.1
-2.6
YTDchg
0.4
0.1
YTD
6.1
11.1
YTD*
301
5,548
Today’s top research theme
Economy (FoE): How can India reap its demographic dividends?
v
At a time when other major economies are experiencing an aging population, the
opportunity for India to increase its foothold in the global economy is immense, if
it is able to exploit its demographic dividends. India’s total dependency ratio – a
measure to gauge demographic dividends – has fallen from ~68% in mid-1990s to
~52% in 2015 and is expected to bottom at ~46% by 2040.
v
While a larger working-age population might be necessary, it is not sufficient to
reap demographic dividends. The share of working-age population looking for
work holds the key. During the past decade, while India’s working-age population
has grown at 1.9% per year, its labor force has grown at just 0.9%.
v
Over the next two decades, larger working-age population must be
complemented by a recovery in the labor force participation ratio (LFPR).
Nevertheless, higher LFPR will bring with it the challenge of providing sufficient
good-quality employment opportunities, without which India will not be able to
reap demographic dividends.
Labor force participation ratio holds the key
Research covered
Cos/Sector
Economy
Transport Corporation
Indian Bank
Gujarat Gas
L & T Infotech
GE T&D India
K E C Intl
Zensar Tech
Parag Milk Foods
Siti Networks
Metals Weekly
Results Expectation
Key Highlights
FoE: How can India reap its demographic dividends?
Corner Office — Healthy volume growth led by restocking post GST
Strong operational performance with asset quality improvement
Roller coaster continues
Beat on revenue growth despite ramp-down in India business
Operating performance above expectations
Operating performance above expectations led by margins beat
Waiting for the big guns to start firing
Subdued top-line growth again
Phase 3/4 monetization to boost revenue
Chinese export HRC prices see some weakness
ALPM | BHEL | CSTRL | CIPLA | DBEL | SKB | JYL | TEAM
Chart of the Day: Economy (FoE) – How can India reap its demographic dividends?
India’s TDR and CDR moved in opposite direction during
the last decade
Female labor force participation ratio (FLFPR) in India is
half the world’s average
Source: ILO, MOSL
Research Team (Gautam.Duggad@MotilalOswal.com)
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.