FIIs India Stocks Strategy – Post Budget 2010

Post Budget 2010, the Indian markets rallied. However, is the rally sustainable ? Here are the various Strategies adopted by Foreign Institutional Investors – The Major Movers of Indian Market.

Bofa Merrill Lynch – The positive from the budget was that the Finance Minister has laid a roadmap for cutting fiscal deficit with a forecast of 5.5% in FY11 (vs 6.9% in FY10) and targeted capping Government debt to GDP ratio. But Sensex EPS change from budget is practically zero. Corporate earnings growth will be close to 25% in FY11. However, Read more

Indian Corporate – Rising from the Bottom

In December 2009 quarter, Indian companies recovered all the profits that it had lost in December 2008 quarter due to global factors (economic slowdown & liquidity crisis), on back of YoY sales growth of 20%. We will have a look at Sectoral Performance of the Indian industry to get an overview on how the bounce back has been.

Auto Sector is the best performing sector, and illustrated ‘Total Cost Control’. Profits scaled to new peaks, (almost knocked down to zero profitability in Dec-08). Auto Ancillaries displayed similar trend. Read more

Budget 2010 – Pragmatically progressive

The market’s rally post the budget reflects a realistic and progressive F2011 budget. The government is achieving fiscal consolidation program which is positive for earnings growth and market performance. The key risk factors in what seems to be a very strong growth environment are a combination of rising inflation and fragile risk appetite.

Yield curve flattening is likely more certain – the government’s market net borrowing is Read more

What’s Working and What’s Not for India ?

India continues to reside in the Glamor quadrant as composite momentum stays strong, while valuation remains expensive. India has a positive beta to the regional markets and would likely benefit from an Asian bull, according to our RAM analysis.
Stronger US$ against regional currencies would further improve India’s return. Read more

Indian IT, Media, Pharma, Telecom, Power Industry Budget Wishlist – II

We are covering to you on what the captains of the Indian industry have put forth in their budget-2010 wish list.You can read the wish list of Banking, Cement, Infratsructure & Construction, FMCG and Hotels here. In this Article we touch base on the wish list of other verticals.

Information Technology – Extension of Tax exemption beyond FY11, Rationalization of the current levy of 15%, Subsuming of VAT and service tax incidence to a single levy and Nation wide broadband rollout and focus on skill building. Read more

Pre Budget Industry Expectations – 1

Amidst high Inflation and extending sops to the Indian industry for growth, Mr. Mukherjee as a difficult task on Hand. We believe that Mr. P. Chaidmabram, the seasoned Finance Minister is the best-fit for this job with his vision for reforms and transformation. Lesser Mortals, we the democratic voters of India have to be content with High Level Politics and with this the Indian Industry has presented its wish list to the FM. We cover industry-wise wish list in 2 posts.

Automobile – Continuation of stimulus package, Remove differential excise duty between small and large cars and Extension of accelerated depreciation benefits for CV. Read more

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