General insurers in India, China, Indonesia may reduce exposure to coal industry gradually: Moody’s

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Chennai, Nov 16 | General insurers in India, China, Indonesia and Vietnam, part of the Asia-Pacific nations, will take a gradual approach in reducing their exposure to coal or coal related industries, said Moody’s Investors Service in a new report.

According to Moody’s, the plan of Asia-Pacific (APAC) insurers to curtail or even cease underwriting and investment exposures to coal or coal-related industries are credit positive, although their coal exposures are generally small.

According to Moody’s, such initiatives will reduce insurers’ potential liability risk from weather-related claims and stranded asset risk, where insurers’ coal-related investment assets will lose economic value.

“APAC economies’ coal dependency will drive insurers’ pace of coal reduction. China (A1 stable), India (Baa3 stable), Vietnam (Ba3 positive) and Indonesia (Baa2 stable) are more dependent on coal than other APAC economies for their energy consumption. As a result, insurers in these economies are more likely to take a gradual approach in reducing their coal exposures,” said Young Kim, a Moody’s analyst.

By contrast, insurers operating in economies with low coal dependencies, such as Japan (A1 stable), and Korea (Aa2 stable) will take a more progressive approach to lowering coal exposures.

Meanwhile, the speed at which different economies can reduce their existing carbon exposure will vary.

This will especially be the case where these economies need to balance environmental concerns that drive carbon emission initiatives with broader policies and socioeconomic considerations.

Foreign insurers operating in APAC markets could incorporate their parent companies’ broader environmental social and governance commitments in their local underwriting and investment practices regarding coal-intensive sectors.

These insurers, with their considerable financial strength and Asian market presence, will influence APAC insurers’ efforts to reduce coal exposures, especially among local, smaller insurers, Moody’s said.

Source: IANS

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Weekly Technical Share Market Outlook

Weekly Technical Share Market Outlook

The Indian market recovered sharply on the last trading day amid the weekend after a continuous fall. Market has managed to halt above 16000 Nifty levels after continuous losing streak. Index reacted violently, grasping Indian as well as global factors throughout the week. Simultaneously, Inflation is catching up and profit margins are taking a hit.

 

Sensex advanced 1532 points or 2.90 percent while Nifty gained 484 points or 3.07 percent in a week. Simultaneously, Bank nifty has overcome bear’s dominance ending the session with 3.49 percent gain. Sectorally,Nifty Metal saw the highest gains of 7.40 percent followed by the Realty and Auto added over 4% gain. On the flip side Nifty IT tumbled 2.82 percent on weekly basis. Midcap and Small Cap measures rising nearly 2 percent as well.

In Nifty stock, EICHERMOT gained 11.31% while TECHM lost 5.98% on a weekly basis. INDIA VIX closes at 23.10 suggests volatility driven market is going to remain intact. Coming to the OI Data, on the call side highest OI witnessed at 17000 Nifty followed by 16800 Nifty strike price while on the put side, the highest OI was at 16000 Nifty followed by 15800 Nifty strike price. Technically, Nifty has formed a Tweezer Bottom type pattern in the weekly chart suggesting a short term buying rally may drive the market until monthly expiry. On the daily chart, price has rebounded from the lower Bollinger band as well.

Momentum indicators MACD & Stochastic were trading with a positive crossover & reversed from oversold zone. However, Index is still struggling to get the support of 50 Simple Moving Average in daily chart. Short term investors and traders are advised to work with option strategies to neutralize the volatility. Overall, Nifty is having support at 15700 mark while on the upside 16700 followed by 16500 may act as an immediate resistance. While Bank nifty has support around 32500 while resistance is placed at 36000 on weekly chart.

Sumeet Bagadia
Executive Director
Choice Broking

Source: Choice India

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