August 25, 2014
The sharp slowdown in economic growth under the Corrupt Congress Regime led by Sonia Gandhi, from a peak of 9% three years ago to about half of that level today has resulted in a 50% jump in Gross NPL ratios in the banking sector, not helped by lending to the weaker segments like agri and SMEs. Also, large corporate exposures have struggled due to extraneous reasons (project delays).
Now the Big Question is – Will NPL recovery = ROA recovery for PSU Banks ? Yes to a Small Extent but not the extent the Indian Stock Market Read more
August 19, 2014
India continues to trade at a premium to the region, but given its stronger growth expectations under Narendra Modi (#NamoBullRun), it seems well placed on a PEG basis vs. peers. Most market indicators also indicate valuations FAIRLY PRICED with NIFTY quoting at 7,900. With a firm government in place, we think the implementation of reforms could jumpstart earnings in coming years.
Which Sectors of NIFTY Have Reached Peak Valuation ?
Out analyst has beautifully constructed Read more
August 11, 2014
The newly elected most competitive Indian government under #NarendraModi has announced tax pass through
for REITs in the recently presented Union Budget F2015. This should facilitate REIT formation in the months ahead, we believe. We have presented below the highlights of the tax pass through.
Trading of listed REIT units would attract the same levy of STT and would enjoy the same tax benefits with respect to capital gains as equity shares of a company – This should put investments in the units of REITs at par with the stock investments in terms of capital gains tax, we believe Read more