ADVICE for the WISE




    Newsletter – July’10
Contents




Index                        Page No.

Economic Update                   4

Equity Outlook                   ...
From the Desk of the CIO…

Dear Investor,                                                                      The global ...
Snapshot of Key Markets

                                                   As on      Change over   Change over
         ...
Economy Update - Global


            • The Conference Board Consumer Confidence Index which had been on
              the...
Economy Outlook - Domestic

             IIP monthly data



                                                      • The G...
Economic Outlook - Domestic

             Growth in credit & deposits of SCBs


      28                              B an...
Equity Outlook


                    FII & MF data                                             Sales growth




          ...
Sector Outlook


Recommendation        Sector                                 Rationale

                     Power       ...
Our Equity MF Recommendations


                                        1 year
                                           ...
Our Equity MF Recommendations


                                                                         Since            ...
Motilal Oswal – MOSt 50 NFO


Overview                                                  Positives
A fundamentally Weighted...
Nifty Linked Debentures


    Nifty linked - Knockout structure


•    The structure is for those investors who are mildly...
Payoff Structure – Scenario Analysis


                                                           Option 1             Opt...
Nifty Linked Debentures


Investment Rationale

•   Our in house view on Nifty is bullish, based on our assessment that th...
Debt Outlook


                   Yield curve
                                                          • The benchmark 10...
Debt Strategy


  Category    Outlook                                 Details

                            We recommend sh...
Our Debt MF Recommendations


                                       3 months   6 months                  Since           ...
Our Top Life
Insurance Recommendations


                 Term Plans
 Birla Sun Life High Net Worth Term Plan*
HDFC Standa...
Our Top Health
                             Insurance Recommendations


 Family Cover                                     ...
Forex

 Rupee movement vis-à-vis other currencies (M-o-M)             Trade balance and export-import data




           ...
Commodities

                                                                          20000

                            ...
Why Karvy Private Wealth?


                   Leveraging breadth of related businesses that KARVY is in
KARVY is an integ...
Disclaimer


The information and views presented here are prepared by Karvy Private Wealth or other Karvy Group
companies....
Contact Us



                     Bangalore                  080-26606126

                     Chennai                  ...
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Karvy Private Wealth - Advice for the Wise - July 2010

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Our ‘Advice for the Wise’ is monthly newsletter which gives you an outlook across sectors along with economic updates both from a global and domestic perspective.

An in-depth research of the market enables us to give you some of the recommendations on Top Equity Mutual Funds, Top Debt Mutual Funds, Top Life Insurance policies and Top Health Insurance policies.

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Karvy Private Wealth - Advice for the Wise - July 2010

  1. 1. ADVICE for the WISE Newsletter – July’10
  2. 2. Contents Index Page No. Economic Update 4 Equity Outlook 7 Debt Outlook 16 Insurance 19 Forex 21 Commodities 22 2
  3. 3. From the Desk of the CIO… Dear Investor, The global cues have been fairly mixed through last Last month, RBI has raised its repo rate by 0.25% to 5.5% month. The Eurozone crisis has become broader but and reverse repo rate by 0.25% to 4%. This has come on less immediate than what it was in Greece alone. The the back of relatively robust GDP growth and continued assessment of the US Federal reserve regarding the concerns on the inflation front. The economic growth in health of US economy has become more cautious in recent quarters has been quite robust and the forecast of recent weeks. Renewed concerns of a real estate growth in the next year has been revised upwards recently. bubble in China have dampened investors’ On the other hand inflation has continued to rise in recent sentiments further. A climate of mild caution globally months. May inflation was as high as 10.2% and is would be a positive for India. On the other hand panic expected to rise further. due to a specific and sharp negative event on the global level might lead to flight to safety on the part of global investors. As the growth momentum continues and so do worries on inflation, RBI is expected to raise the rates further in its As a result, investors should be prepared to move July 27th monetary policy announcement. We believe the into equities in either scenario. Continuity of neutral impact of the rate hikes on the equity markets to be fairly global economic outlook is sufficient to gradually muted. However, it will certainly dampen the possibility of invest in Indian equities. On the other hand, event a break out on the higher side for equity markets in the driven corrections should be considered next 2-3 months. The effect on the debt markets would be opportunities to move aggressively in Indian equities. a rise in the yields. Yields may inch further up due to expectation of another hike. Real estate markets across the country have revived significantly. The medium term outlook on real estate Positive domestic economic growth outlook augers well remains positive for tier 1 cities and cautious for tier 2 for profit growth of listed Indian companies. Hence profit cities. Residential real estate demand has risen due to driven price increase of Indian equities looks quite pent up demand from the lack of transactions during reliable. The other angle of valuation changes is 2008 and 2009. The improvement in commercial and complicated by differences in the growth rates of Indian retail real estate has been more muted owing to economy and global economy. oversupply created during the boom period. Advisory services are provided through Karvy Stock Broking Ltd. (PMS) having SEBI Registration No: INP000001512. Investments are subject to market risks. Please read the disclaimer on slide no.24 3
  4. 4. Snapshot of Key Markets As on Change over Change over June 30th2010 last month last year BSE Sensex 17,701 4.5% 22.1% Equity S&P Nifty 5,312 4.4% 23.8% markets S&P 500 1,031 (5.4%) 12.1% Nikkei 225 9,383 (3.9%) (5.8%) 8 10-yr G-Sec Yield 7.54% (1 bps) 53 bps 7.5 (%) Debt markets Call Markets 5.58% 28 bps 258 bps 7 6.5 Fixed Deposit* 6.00% (0 bps) (100 bps) 6 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 10 yr G-sec yield Line 2 Line 3 Line 4 3,500 Line 5 Line 6 3,300 Line 7 Commodity RICI Index 2,951 0.1% 1.4% 3,100 Line 8 Line 9 Line 10 markets Gold (Rs/10gm) 18,805 2.3% 29.2% 2,900 Line 11 Line 12 Line 13 2,700 Crude Oil ($/bbl) 74.1 7.7% 72.7% 2,500 Line 14 Line 15 Line 16 Nov-09 Oct-09 Jul-09 Feb-10 Mar-10 Aug-09 Sep-09 Dec-09 Apr-10 May-10 Jun-09 Jan-10 Jun-10 RICI index 50 Forex Rupee/Dollar 46.6 0.3% (2.6%) 49 48 47 markets Yen/Dollar 88.7 (2.7%) (6.9%) 46 45 44 Jul-09 Dec-09 Oct-09 Apr-10 Jun-09 Jan-10 Jun-10 Feb-10 Mar-10 Aug-09 Sep-09 Nov-09 May-10 * Indicates SBI one-year FD Rupee/Dollar 4
  5. 5. Economy Update - Global • The Conference Board Consumer Confidence Index which had been on the rise for three consecutive months, declined sharply in June and now US stands at 52.9, down from 62.7 in May indicating growing uncertainty about the future state of the economy and labor market . • US m-o-m unemployment rate edged down to 9.5 per cent in June 10. • Euro-zone purchasing managers index for June fell to 56.0 from 56.4 in May indicating a slow pace of growth. Europe • Unemployment in the Euro zone remained at a record 10% in May for the third month running with almost 16m people out of work. • The industrial production grew by 0.8% in April from the March level which is a 9.5% rise on a 12-month comparison. • Though at a YoY increase of 20%, Japan’s industrial production slipped 0.1% in May from the previous month marking the first decrease in three Japan months. • Japan’s unemployment rate increased in May 10 (m-o-m) to 5.2% from 5.1% in April 10. • China’s purchasing managers’ index released by HSBC Holdings Plc Emerging dropped to a 4-month low of 50.4 from 52.7 in May as output and new economies orders dropped outright for the first time since the depths of the global downturn in March 2009. 5
  6. 6. Economy Outlook - Domestic IIP monthly data • The GDP growth rate for FY10 came in at 7.4%; better than the estimated 7.2% for FY10 with FY10 Q4 GDP figure coming in at 8.6%. • For FY10, growth in construction sector remained unchanged at 6.5%, while industry and services • Industrial output as measured by the Index of grew at 9.3% (vs 8.2% ) and 8.5% (vs 8.7%) year on Industrial Production (IIP) grew by 17.6% (y-o-y) year. in April 10; with growth seen across all sectors. The manufacturing sector in April grew 19.4% as • The Finance ministry is targeting FY11 growth at against 0.4% a year earlier ~8.50%. We believe the current target is sustainable as we expect manufacturing and service sectors to • We believe the growth in IIP will shift from continue to drive growth in the next few quarters, consumption led sectors to manufacturing even as farm output stages a turnaround. sectors as the economy keeps improving. GDP growth 6
  7. 7. Economic Outlook - Domestic Growth in credit & deposits of SCBs 28 B ank Credit A ggregate Depo sits 23 (%) 18 • Inflation as measured by WPI stood at 10.16% 13 (y-o-y) for the month of May-10 as compared to 9.59% during April 10 8 M a y- 0 9 J ul- 0 9 S e p- 0 9 N o v-09 J a n- 10 M a r- 10 M a y- 10 • We expect WPI inflation numbers to increase in coming months due to a direct fall out of the fuel price hike and wearing off of high base effect but • Bank credit growth further improved in the month of expect moderation in m-o-m inflation numbers May as it increased by 17.1% as compared to 17.0% as the RBI continues its monetary tightening in the month of April 2010 stance. • We expect credit growth to further improve in the next few quarters and settle at ~20% levels on the Inflation back of improving business confidence and decline 14 in risk aversion on the part of banks as the 12 10 economic recovery gathers momentum. 8 6 (%) 4 2 0 Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- -2 08 08 08 09 09 09 09 10 10 -4 7
  8. 8. Equity Outlook FII & MF data Sales growth • Substantial improvement in sales was witnessed in Q2 & Q3 mainly in consumption oriented sectors of the economy. • We expect improvement in sales in upcoming quarters; especially in the manufacturing space as domestic demand picks up. • FIIs invested Rs. 10,244 Cr. in equities in the month Profit growth of June alone as the markets remained relatively stable throughout the month on cues of stable macroeconomic indicators. • Mutual Funds sold around Rs. 1,092 Cr in the month of June as Corporates exited the markets to fulfill • Recent Q3 & Q4 numbers have beaten estimates their advance tax liabilities for the quarter. with higher sales and better operational efficiency aiding profit growth. • Margins are expected to remain stable in the following quarters as lower interest costs are offset by higher raw material costs 8
  9. 9. Sector Outlook Recommendation Sector Rationale Power Positive on Power cos. with installed capacity, Power equipment manufacturers and EPC contractors Capital Goods We expect the capex cycle to once again gather steam as demand picks up. Positive on manufacturing companies Banks Credit off take to improve driving core earnings growth and NPAs to decline as economy recovers. Overweight Oil & Gas The oil companies are expected to benefit from the deregulation of oil prices; positive on upstream oil companies and refineries. Cement Despite large capacity build-up, no sustained pressure seen on sales realization as demand growth is equally strong. Higher capacity of the existing players will help post strong profit growth and improved ROE Consumer Goods Sector currently enjoys rich valuations and is unlikely to see any P/E upgrades or earnings upgrades in the medium term. IT Upside capped in IT stocks due to the depreciating Euro and Neutral higher employee costs compressing profit margins. Auto Auto stocks look fully priced. Despite upbeat sales expectations, expect margins to come under pressure 9
  10. 10. Our Equity MF Recommendations 1 year 3 year return Since Inception AUM (Cr.) Date of Inception return Core Diversified HDFC Top 200 Fund 35.4% 17.3% 23.9% 7,220 03/09/1996 Franklin India Prima Plus 31.3% 9.1% 21.0% 1,727 29/09/1994 DSPBR Top 100 Equity Fund 29.8% 13.1% 35.7% 2,679 11/03/2003 Nifty 23.8% 7.1% Aggressive Equity DWS Investment Opportunity Fund 31.9% 12.3% 22.7% 178 10/02/2004 HDFC Growth 42.0% 14.1% 23.6% 1,279 11/11/2000 Reliance Growth 40.8% 14.2% 29.6% 7,353 08/12/1995 Mid and Small Cap IDFC Small & Mid Cap Equity Fund 55.9% N/A 26.6% 650 07/03/2008 Reliance RSF Equity Fund 38.4% 19.5% 23.9% 2,635 12/06/2005 Birla Mid Cap 47.7% 13.3% 36.0% 1,757 16/10/2002 CNX Mid Cap 49.8% 10.8% Return below one year is absolute and above one year is CAGR Performance as on 30th June, 2010turn below one year is absolute and above one year is CAGR Performance as on 30th June, 2010 10
  11. 11. Our Equity MF Recommendations Since Date of 1 year return 3 year return AUM (Cr.) Inception Inception Index/ETFs Benchmark Nifty BeES 24.8% 7.9% 22.5% 537 28/12/2001 Benchmark Junior BeES 45.0% 9.0% 35.6% 208 21/02/2003 Balanced HDFC Prudence Fund 44.8% 16.2% 19.9% 3,992 01/02/1994 DSPBR Balanced Fund 31.3% 12.7% 17.9% 672 27/05/1999 Birla SL Balance 95 30.7% 13.3% 24.8% 290 28/03/1995 Sector / Thematic Sundaram Capex Opportunities 27.5% 7.8% 21.0% 542 29/09/2005 Reliance Banking Fund 44.5% 23.9% 35.6% 1,121 28/05/2003 Reliance Diversified Power Sector Fund 29.1% 23.1% 40.3% 5,320 10/05/2004 Nifty 23.8% 7.1% Crisil Balanced Index 16.5% 8.5% Return below one year is absolute and above one year is CAGR Performance as on 30th June, 2010 Return below one year is absolute and above one year is CAGR Performance as on 30th June, 2010 11
  12. 12. Motilal Oswal – MOSt 50 NFO Overview Positives A fundamentally Weighted ETF based on the S&P CNX Nifty Index. The MOSt 50 basket consists of all • Higher allocation to stocks with superior 50 stocks of Nifty but in a proportion determined by fundamentals & reasonable valuations giving a using a pre-defined methodology that assigns higher upside potential. weights based on stock’s fundamentals (ROE, net worth, retained earnings & price) against market cap • It combines the benefit of active algorithmic based weights used in Nifty. allocation & passive execution protecting investors from any fund manager bias Issue Terms • Lower cost structure as compared to a traditional investment product • Entry Load : Nil • Real time prices – ETFs can be traded on real • Exit Load : Nil time ‘spot’ prices on the exchange, unlike mutual • funds which can be bought/sold only at end of day Minimum Application amount :Rs. 10,000 & in NAVs multiple of Rs. 1 thereafter • Speedy & Easy execution – Real time execution of • NAV offer price :During NFO period MOSt Shares buy-sell orders through any broking account thus M50 (units) will be allotted at 1/100th of M50 basket offering intraday liquidity Value • No Entry or Exit loads • NFO Period : 30th June 2010 to 19th July 2010 12
  13. 13. Nifty Linked Debentures Nifty linked - Knockout structure • The structure is for those investors who are mildly bullish on the market and would not like to take "end of the period" or "point-to-point" risk on the market. 15 / 18 Months Tenure 110% Participation Rate 100% Principal Protection Average of Nifty at 1M, 2M, 3M Initial Level Average of Nifty at 13M, 14M, 15M Final Level 14% [absolute] KO Rebate 120% KO Level 1.1 * Max { 0, Final Level/Initial Level - 1} If KO is not triggered Barrier Observation Frequency Monthly from 4M to 12M 13
  14. 14. Payoff Structure – Scenario Analysis Option 1 Option 2 Option 3 Option 4 Nifty depreciates or Nifty appreciates Nifty appreciates appreciates by 0% by 10% by 19.99% Knock Out @ 20% Indicative Yield 0% 11% 21.99% 14% Tenure (Days) 548 548 548 548 Indexation Rate 6.32% 6.32% 0.00% 0.00% Upfront Expenses 2% 2% 2% 2% Face Value (Rs.) 100 100 100 100 Investment Amount 102 102 102 102 Value of FV after indexation 106.32 106.32 100.00 100.00 Absolute Return (%) 0.00 11.00 21.99 14.00 Total 100 111 121.989 114 Taxable Amount (LTGC with indexation) 0.00 4.68 19.99 12.00 Tax Rate 22.66% 22.66% 11.33% 11.33% Tax Incidence 0.00 1.06 2.26 1.36 Variable Expenses 0% 0% 0% 0% Cash Flow (net of taxes) 100.00 109.94 119.72 112.64 Absolute Post Tax Return (%) 0.00 9.94 19.72 12.64 XIRR 0.00% 6.52% 12.74% 8.25% The indicative yields are expected to be in the range of 0% to 12.60%. The yield mentioned in the calculation is only indicative and in no way assures the exact yield of the portfolio. The exact portfolio would be determined after the portfolio is constructed. Past Performance may or may not be sustained in future Please consult your tax advisor before investing. 14
  15. 15. Nifty Linked Debentures Investment Rationale • Our in house view on Nifty is bullish, based on our assessment that the domestic economy will grow at near double digit levels led by strong growth in industry and services and resurgence in agriculture which will help drive corporate earnings growth at a CAGR of 18% to 20% over the next three years. • The product provides 110% participation on the Nifty and also provides 100% capital protection; thereby protecting the downside completely and providing returns higher than actual Nifty performance. • In case of any sharp up swings, the product ensures a coupon of 14%. • There is no end of period risk. Risks • Credit risk of the issuer. However, the debentures will be secured partly by way of creation of charge on immovable property and partly by way of hypothecation / floating charge on the current assets and / or receivables and / or other movable tangible and / or intangible assets and/or any other asset of the issuer and / or its affiliates subject to the satisfaction of the debenture trustee. Taxation • As it is a listed debenture, it will be taxed at 10.3% 15
  16. 16. Debt Outlook Yield curve • The benchmark 10 yr G-sec yield increased from (%) 7.4% in May to settle around 7.54% in the month 9 of June. With high inflation numbers, we see the 7 RBI tightening its monetary stance in the coming 5 review. 3 1 4 7 10 13 16 19 • We believe that future monetary tightening measures is unlikely to a major impact on the Yrs longer end of the yield curve. We expect the 10 yr G-sec yields to remain in the broad range of 7.25 – 8.0% in the next few quarters. • We expect yields at the longer end of the yield curve to remain stable. High inflation, monetary tightening and rising credit growth will keep the yields at the longer end range bound. • Short term liquidity concerns arising from 3G auctions and advance tax payments will keep yields at the shorter end at elevated levels. 10-yr G-sec yield 8.5 • Due to rising inflationary expectations, we expect 8 7.5 further interest rate hikes by RBI in the July policy (%) 7 review. 6.5 6 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 16
  17. 17. Debt Strategy Category Outlook Details We recommend short term bond funds with a 6-12 month Short Term investment horizon as we expect them to deliver superior Bond Funds returns due to high YTM and concerns over credit quality ease as the economy recovers, thereby prompting ratings upgrade. MIPs should be considered as an investment option; given the low returns in debt instruments. A 15%-20% equity MIPs kicker should deliver superior returns as compared to pure debt instruments. We recommend liquid plus funds for short-term parking of money (up to two months). We expect returns from this Liquid Plus category of funds to improve as the RBI continues to exit its loose monetary stance and as liquidity becomes tight. We expect yields at the longer end of the yield curve to Long remain stable. Yields may remain in the broad range of Tenure 7.25 – 8.0% in the next few quarters. This may be an Income attractive investment once the inflationary pressure in the Funds economy settles down. 17
  18. 18. Our Debt MF Recommendations 3 months 6 months Since Date of Fund 1 year (%) AUM (Cr.) (%) (%) Inception Inception MIPs HDFC MIP LT 3.3% 5.0% 15.3% 12.6% 6,161 29/12/2003 Birla SL MIP II Savings 5 1.6% 2.7% 6.5% 8.7% 1,793 22/05/2004 Liquid Plus Funds Reliance Medium Term Fund 1.3% 2.5% 4.9% 6.9% 13,942 25/09/2000 HDFC CMF- Treasury Advantage Plan 1.2% 2.3% 4.7% 6.9% 31,521 03/01/2000 Birla SL Floating Rate - LTP 1.3% 3.0% 7.2% 6.9% 587 05/06/2003 Short Term Funds Birla Dynamic Bond Fund 1.6% 3.4% 6.8% 8.2% 8,613 30/09/2004 Reliance Short Term Fund 1.6% 2.8% 5.9% 7.8% 8,613 23/12/2002 Reliance RSF Fund – Debt Option 1.5% 3.1% 7.2% 5.0% 2,890 12/06/2005 Kotak Credit Opportunities Fund NA NA NA 6.3% 283 11/05/2010 Templeton India Income Opportunities 2.2% 4.9% NA 9.9% 2,653 21/12/2009 Fund Income Funds ICICI Pru Income Plan 1.6% 1.7% 3.3% 9.7% 789 19/06/1998 Canara Robeco Income Fund 2.6% 3.0% 4.9% 9.2% 217 19/09/2002 Returns are absolute Performance as on 30th June, 10 18
  19. 19. Our Top Life Insurance Recommendations Term Plans Birla Sun Life High Net Worth Term Plan* HDFC Standard Life – Term Assurance Plan ICICI Pru Life Insurance Pure Protect Metlife – Suraksha Plus ULIPs Kotak Platinum EDGE Birla SL Platinum Premier Pension Plans TATA AIG Invest Assure Future Plus Child Plans Kotak Headstart Future Protect Birla Sun Life Children Dream Plan Max New York Life Shiksha Plus Annuity Plans ICICI Pru Life Immediate Annuity 19
  20. 20. Our Top Health Insurance Recommendations Family Cover Sum Assured Annual Premium Star Family Health Optima Rs. 5 L Rs.6,875 Apollo Munich Easy Health Standard Rs. 5 L Rs.9,999 Both policies cover self, spouse and 2 dependent children Entry Age for Apollo is 3 months – 60 yrs Entry Age for Star Health is 5 months – 60 yrs Critical Illness Sum Assured Annual Premium HDFC Critical Care Plan Rs. 5 L Rs. 3,465 Assuming an individual of 30 yrs of age and policy term of 20 years Health Cover – Senior Citizens Sum Assured Annual Premium Star Health Senior Citizens Red Carpet Rs. 2 L Rs. 9,326 Entry age is 60-69 years Loss of income coverage Sum Assured Annual Premium TATA AIG Life Health First Rs. 2 L Rs. 13,605 20
  21. 21. Forex Rupee movement vis-à-vis other currencies (M-o-M) Trade balance and export-import data • Exports for the month of May increased by 35.1% y-o-y while imports increased by 38.5% increasing the trade deficit to USD 11,292 Mn. •The Rupee appreciated v/s the US dollar and the Euro in the month of May due to uncertainties emerging in Euro zone economies and slow pace of recovery in the U.S.. Capital account balance • Our medium term view is that the rupee is likely to strengthen further in 2010. Higher interest rates in India would attract large capital flows. Moreover the government is expected to simplify the rules on • Capital account balance was positive in the first foreign inflows to facilitate larger foreign capital nine months for FY10 inflows in the form of FDI • We expect the capital account balance to remain positive due to expectations of higher interest rates; thereby attracting inflows and buoyant equity markets 21
  22. 22. Commodities 20000 19000 18000 • Gold likely to trade higher as low interest rates in the 17000 Precious west enhances Gold’s alternate investment demand 16000 15000 Gold prices likely to average $1,200/oz on Comex and Metals 14000 Rs. 17,900/10 gm on MCX, for the next six months. Gold 10 gm 100 • Though last month the crude prices increased by 7.7%, but Oil ($ / bbl) they are expected to trade lower in Q2 due to no significant Oil & Gas seasonal demand (Q2 is the maintenance season for 70 refineries) • Natural gas prices to trade lower in Q2 owing to speculation 40 over weak demand. Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 1050 • Prices of essential commodities have seen a marginal 1000 increase in the last month. But, due to expectations of 950 900 Agri higher production output, we see the prices declining in the 850 coming months 800 • A favorable Rabi output to further cool prices in the medium Nov-09 Oct-09 Apr-10 May-10 Jun-09 Jan-10 Jun-10 Jul-09 Feb-10 Mar-10 Aug-09 Sep-09 Dec-09 term RICI Agri 2,700.00 2,500.00 • The data released regarding consumer confidence, jobless 2,300.00 2,100.00 Base claims and lower vehicle demand in the last month suggest 1,900.00 a decrease in metal prices in the shorter term but as the 1,700.00 Metals markets stabilize over the next six months, we could expect 1,500.00 Nov-09 Oct-09 Apr-10 May-10 Jun-09 Jul-09 Jan-10 Jun-10 Dec-09 Feb-10 Mar-10 Aug-09 Sep-09 a modest uptrend in prices. RICI Metal 22
  23. 23. Why Karvy Private Wealth? Leveraging breadth of related businesses that KARVY is in KARVY is an integrated financial services group, with Karvy Private Wealth being one of its arms. The entire group’s strengths are leveraged to provide end-to-end wealth advice to Karvy Private Wealth clients. For example, SME clients can receive advice on their personal wealth while also getting investment banking advice from the I-banking arm of Karvy. Maximum choice of products & services KARVY Private Wealth offers the widest breadth of products and services, providing clients a variety of options through a single contact. Products and services include equities, debt instruments, commodities, Mutual Funds, Insurance, Structured Products, Financial Planning, real estate advice, etc. Product-neutral advice We ensure that our recommendations are 100% product-neutral and unbiased because unlike other players, we are neither tied up with any one particular insurance company nor do we have our own mutual funds. All-India presence Set to have business in 20 - 25 cities we are poised to cater to families and businesses spread across multiple cities in India providing them with combined and integrated advice. For one-off services, if required, we can also leverage KARVY Group’s presence in 400 cities. 23
  24. 24. Disclaimer The information and views presented here are prepared by Karvy Private Wealth or other Karvy Group companies. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended here may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned here, investors may please note that neither Karvy nor any person connected with any associated companies of Karvy accepts any liability arising from the use of this information and views mentioned here. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above-mentioned companies from time to time. Every employee of Karvy and its associated companies are required to disclose their individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Stock Broking Ltd. The information given in this document on tax are for guidance only, and should not be construed as tax advice. Investors are advised to consult their respective tax advisers to understand the specific tax incidence applicable to them. We also expect significant changes in the tax laws once the new Direct Tax Code is in force – this could change the applicability and incidence of tax on investments 24
  25. 25. Contact Us Bangalore 080-26606126 Chennai 044-28269695 Delhi 011-43509268 Goa 0832-2731822 Hyderabad 040-23312454 Kolkata 033-40515100 Mumbai 022-33055000 Pune 020-66048791 Email: wealth@karvy.com SMS: ‘HNI’ to 56767 Website: www.karvywealth.com Corporate Office : 702, Hallmark Business Plaza, Sant Dnyaneshwar Marg, Bandra (East), Mumbai – 400 051 25

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