1. Con
nference Call Tr
e ranscript
t 10 Jan 2011
AMC: DS
SPBR
Equity
Market has been nervous
M s in last few days. The vi isibility on th
he earnings has gone do own.
Benchmark (nifty) was e expected to grow at 2
o 20% but exp pect the groowth rate t be
to
around 15%.
Faactors affec
cting the groowth are inf flation: Diffi
icult to be i the range of RBI com
in e mfort
le
evel. Crude o oil to be croossing $ 100 which will p put pressure e on inflationn. There will also
be impact on the Asset A Allocation as debt is goin ng to deliver better retur rns than equuity.
Political stability is under threat due e to the recent scams a and the opposition has gone
one step ahead.
Consumption n story is losiing its visibility as inflatioon is expected to reduce e consumpti ion.
Future growt is depend on how governmen comes ba as projec are not been
th ded w nt ack cts
coompleted du ue to legal aand environm mental issue es. Retail cha ain still needds to be explored
by many play yers.
Global econo
G omy has bee en doing bet tter as there e is improve ement in the e retail spennding
and exports h have gone up along with h some mom mentum.
Developed markets to d better as they don’ have infla
D m do ’t ation proble and also are
em o
atttractively valued.
Domestically, there migh not be any meaning downsid as our ex
D , ht gful de xports have also
e
goone by 13%. . But, global money flow w will not be supportive t this year.
If Oil breache $100 the there can be some f
f es en n fundamental deterioration as it wil put
ll
pressure on the corpora margins and if pass on, it w have infl
ate sed will lation effect and
t
coorporate vol lumes might t be affected d.
Markets migh
M ht see anoth her 5‐10% co orrection fro om current levels and w will be good levels
to
o enter.
DSPBR Top 10
D 00 is ideal fo
or current m market situation and the fund is unde er weight on n rate
se
ensitive sect tors like Auto and Banking. Over we eight on sect tor which be enefit from gglobal
development ts like Oil & G
Gas, Metals IT.