Equity Research
Indian Economy to Recover Post-Polls – MerrillFebruary 26, 2014
BOFA Merrill Hosted an Investor Conference with Nine Top Government Officials and they are of the opinion that Delhi is trying to recover lost ground by compressing twin deficits, undertaking reforms and fast tracking project clearances. The benefits of these initiatives should show in 2-3 years, in their view.
Polls: Political punditry concur with opinion polls that show the BJP-led National Democratic Alliance overtaking the ruling Congress-led United Progressive Alliance. At the Read More »
A Decade of Economic Destruction by Corrupt Congress led UPAFebruary 22, 2014
We have received e-mails from readers who do not know much Indian Economy and wondering why their Investment in Indian Equity has not yielded much ? We’d like to enlighten them in this article.
Over FY1994-97, average GDP growth was 7.5% but this led to companies piling up debt and the period of high growth came to a crashing halt with the Asian crisis in 1997. This was followed by six lean years of FY1997-2003. Over FY2003-11, average GDP growth was 8.5%, which led to companies Read More »
Credit Suisse Outlook for Indian Equities in 2014November 25, 2013
The Indian markets will be driven by politics and developments around the “taper” to drive the market in the first half of 2014. Both will have limited impact on fundamentals, but market sentiments will still get affected. Their research suggests almost no correlation between the extent of government fragmentation at the centre and growth / market performance.
Investment Cycle Broken
They foresee the investment cycle staying broken for the next two to three years and middle-income consumption to stay under pressure as inflation and stagnant Read More »
Indian Markets / Economy & Macro / Sector Research
Jagdish Bhagwati & Arvind Panagariya – Write Economic Policies of Narendra ModiFebruary 20, 2014
Two star economists with a free market bent – Jagdish Bhagwati and Arvind Panagariya – appear to be the intellectual godfathers of Progressive BJP led NDA’s forthcoming election manifesto. These gents have published a book in 2013 – India’s Tryst with Destiny – in which they have criticized the UPA’s redistributive policies (Food Security Act, NREGA, etc), declared their fondness for the “Gujarat model” and advocated an economic renewal program centred on cutting universal subsidies, reviving spend on infrastructure, reforming India’s antiquated labour laws and reforming the country’s higher education system.
Both professors have steadfastly supported Narendra Modi in the domestic and international press. Whilst they deny having any official role Read More »
Views of Various Brokerages on New RBI Governor and PolicySeptember 23, 2013
The rBI Governor announced his first Monetary Policy on Friday. Here are the Reactions coming from various Chief Economists of Brokerage / Research Houses.
Ritika Mankar Mukherjee of Ambit Capital said,
RBI governor’s first monetary policy review, the RBI normalised the MSF-repo rate corridor (effectively by 100bps) and increased the repo rate by 25bps. In view of the RBI’s explicit focus on inflation, we reiterate our view that repo rate increases of another 25-50bps are likely to be administered over the rest of FY14. This is likely to be accompanied by the continued stabilisation of the MSF corridor from September to October 2013, as the next Fed meeting is scheduled for end-October 2013. There is a high probability that the next round of intervention is administered in mid-October 2013 i.e. ahead of RBI’s early-November policy review and ahead of the Fed’s end-October policy review
Citigroup Analyst Anurag Jha made the following observation, Read More »
Dr Raghuram Rajan takes Charge as RBI Governor – Thugs & Politicians Don’t MessSeptember 5, 2013
Dr Raghuram Rajan, world famous Economist has come to the rescue of the Indian Government as he assumed charges as the RBI Governor. The message from the Governor is straight – Progressive Reforms for India.
Highlighting the critical need for transparency and predictability in conveying and guiding monetary policy, governor Rajan appeared to draw a distinction with the frenetically paced and sometimes contradictory and counter-productive measures taken by the Read More »
Corporate Earnings News
Corrupt Paralyzed Congress Led UPA Government Destroy PSU BanksFebruary 20, 2014
Just like Bad Parents destroy the Family, so has the Bad and Corrupt Congress led politicians in the UPA Government which have been lying there in the state of paralysis without taking any decisions for the betterment of the Indian Economy.
The Financial health of India Inc. continues to deteriorate and, in 3Q, our sample of 3,700 companies witnessed a further increase in share of debt with companies. Share of infra and metals Read More »
Corporate India Cautious – No Pick up in Investment Demand Yet
November 27, 2013
At the CLSA India Conference, Indians Corporates appeared to be cautious and most highlighted weak consumer demand as a near-term headwind. The cautious view was emanating from the belief that the market has already factored in, partially, the strong outcome in the elections.
Weak Consumer Sentiment
10 companies from consumer staples & retailing appeared cautious on the near term growth outlook citing weak consumer demand partially Read More »
IPO Reviews
Subscribe to PowerGrid FPO at Cut-OffDecember 4, 2013
PowerGrid Corporation of India’s FPO is an attractive opportunity to own the fast-growing (19% net profit CAGR in FY13-17) near monopoly regulated power utility with stable RoEs (~16% in FY15/16). Whilst 10% equity dilution at Rs90/share was the ideal scenario, the 13% dilution at Rs85 (the lower band of the FPO) would raise enough equity to meet the equity needs up to FY15E/16E capex. The allowed return on equity in 2001-04 and 2004-09 was 16% and 14%, respectively. The CERC increased the regulated RoE to 15.5% + 0.5% incentive for timely completion of the projects.
After aggressive bidding in the initial eight Read More »
Why Powergrid is going for FPO ?
August 6, 2013
Powergrid Corporation acknowledged that its decision to go in for a 15% follow-on equity offering (FPO) is arguably contrary to its stance in recent investor interactions, wherein it has indicated: 1) the need for fresh equity is not envisaged in its base case business scenario, and 2) a firm decision on the issue would be taken after examining the FY15-19
regulatory returns regime to be finalized by regulator.
Investment opportunities are growing, all of which would cumulatively require a sizeable equity infusion – in the past few weeks PWGR has won a bid-based project Read More »
Mutual Funds in India
Madhusudan Kela – Reliance Mutual Fund, CIO’s messageNovember 15, 2012
We present to you the view of Madhusudhan Kela, Sr. Fund Manager and Chief Investment / strategist Officer with Reliance Capital Asset Management company on the occasion of Diwali.
Once again, as the biggest and the brightest Hindu festival, Diwali, is upon us, it is indeed a time for introspection, celebration of life and its gifts. [Skippng some Paragraphs Related to Religious References..]
Just think, last Dec, investors had started Read More »
HDFC Top 200, Equity Funds – Review + What Next ?November 1, 2012
If you’ve been a reader of our Site, then you all know we first recommended investment in HDFC Mutual Funds way back in 2003 and since then have been advising to stick to SIPs with Top-Ups during Market Crashes. Let us analyze what our SIPs have actually given us in Returns with the market going nowhere in the last 30 Months. [Sensex 17,527 March-2010]
HDFC Top 200 Fund Review
This the Largest Equity Fund in India which has grown organically over 15 years and has Assets Under Management around Rs 11,000 Cr. In the last 10 years / 5 years period, the fund has consistently beaten benchmarks. However, returns in a longer duration i.e since inception has tapered off from 28.33% in March-2010 to just 23.49% in Sept-2012 as shown below. Read More »
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