This is a brief outline of the conference call held on 13 December 2010 with Mrs Srividhya Rajesh, Fund Manager, Sundaram Mutual Fund. The article covers Sundaram Mutual Fund views on Economy and Markets
Right horizons PMS - India Asset Market Review 2013 & outlook 2014Vinayak Kanvinde
A review on all asset class performance in 2013 and outlook for 2014. We believe that long duration financial assets (equities & long duration fixed income) would do extremely well in 2014.
Right horizons PMS - India Asset Market Review 2013 & outlook 2014Vinayak Kanvinde
A review on all asset class performance in 2013 and outlook for 2014. We believe that long duration financial assets (equities & long duration fixed income) would do extremely well in 2014.
The Indian rupee’s recent roller-coaster ride has impacted virtually every section of society. It has hit the country’s finances, eroded investor confidence, pushed down stock indices, pumped up fuel prices and, in turn, those of essentials.
The rupee’s slide is symptomatic of the concerns about the India story. Months of policy paralysis, political churn and social standoffs have taken their toll. It is in this backdrop that senior journalist Subhomoy Bhattacharjee analyses the prospects of the rupee in the cover story of the August edition of PAR, MSLGROUP India’s public affairs newsletter.
Another senior journalist, Kandula Subramaniam, puts into perspective the power crisis the country is up against and the dilemma state electricity companies are facing.
Additionally, you'll also find an analysis of India's bold food security law as well as an update of important policy announcements and reviews in this issue.
Non-Japan Asia (NJA) currencies have weakened in the past four weeks, led by sharp falls in the INR, THB and IDR (Figure 1). Rising oil prices and tepid exports are amongst the common factors behind this currency weakness.
But precedent suggests that outside of periods of major financial shocks, these bouts of currency depreciation are reasonably shallow and short-lived and typically followed by similarly shallow and short-lived bouts of currency appreciation (Figure 2). It’s a similar picture for the CNY (Figure 3).
This pattern of mean-reversion reflects in part the ebbs and flows of foreign FX flows and seasonality of current account flows. Importantly, it also reflects NJA central banks’ willingness and ability to smooth the path of their currencies via FX (and verbal) intervention. They have to balance the competitiveness of their currencies and large export sectors on the one hand with imported inflation and the cost of servicing foreign-currency denominated debt on the other.
The Indian rupee’s recent roller-coaster ride has impacted virtually every section of society. It has hit the country’s finances, eroded investor confidence, pushed down stock indices, pumped up fuel prices and, in turn, those of essentials.
The rupee’s slide is symptomatic of the concerns about the India story. Months of policy paralysis, political churn and social standoffs have taken their toll. It is in this backdrop that senior journalist Subhomoy Bhattacharjee analyses the prospects of the rupee in the cover story of the August edition of PAR, MSLGROUP India’s public affairs newsletter.
Another senior journalist, Kandula Subramaniam, puts into perspective the power crisis the country is up against and the dilemma state electricity companies are facing.
Additionally, you'll also find an analysis of India's bold food security law as well as an update of important policy announcements and reviews in this issue.
Non-Japan Asia (NJA) currencies have weakened in the past four weeks, led by sharp falls in the INR, THB and IDR (Figure 1). Rising oil prices and tepid exports are amongst the common factors behind this currency weakness.
But precedent suggests that outside of periods of major financial shocks, these bouts of currency depreciation are reasonably shallow and short-lived and typically followed by similarly shallow and short-lived bouts of currency appreciation (Figure 2). It’s a similar picture for the CNY (Figure 3).
This pattern of mean-reversion reflects in part the ebbs and flows of foreign FX flows and seasonality of current account flows. Importantly, it also reflects NJA central banks’ willingness and ability to smooth the path of their currencies via FX (and verbal) intervention. They have to balance the competitiveness of their currencies and large export sectors on the one hand with imported inflation and the cost of servicing foreign-currency denominated debt on the other.
I have found all primary data and secondary data for this project by my own efforts and the all data are 100% true according to my summer internship experience..Thanks
London 29 November 2013. MNI India Consumer Indicator Rises to 122.5 in November from 120.2 in October. Inflation Expectations Hit a Record High. The MNI India Consumer Indicator rose for the second consecutive month in November, the highest since June, led by an improvement in personal finances. The November rise was driven by an increase in three out of the five components which make up the India Consumer Indicator.
Right Horizons PMS India Asset Market Review 2013 Outlook 2014Vinayak Kanvinde
Like every year, we review how the Indian asset markets have performed in 2013 and provide a bird eye view of our expectation on asset performance in 2014.
This is a brief outline of the conference call held on 16 November 2010 with Nilesh Shah, Deputy Managing Director, ICICI Prudential Asset Management Company (the AMC). The topic of the call was ICICI Prudential AMC’s views on Macro Economy, Equity and Fixed Income Market and outlook on ICICI Prudential Regular Savings Fund.
why FIIS Selling ?
Which funds/stocks did investors choose?
-Add Units in SIP Folio
-3 SMART MOVES to take in this Market
-Domestic Institutional Investor's buying overpowered the selling
of FIIs and FPIs
June '22 was an action packed month....
Both SENSEX & NIFTY was highly volatile through out the month.
Domestic Institutional Investor's buying overpowered the selling
of FIIs and FPIs. Current resilience in the Equity Market is only on
the back of domestic institutional investors and also the average
retail investor.....read more about this new strength of Indian
Equity Market !
Domestic demand in some of the key rapid-growth markets (RGMs) has faltered recently and - whilst most rapid growth market economies continue to prosper - their growth trajectory seems more varied. Increasingly investors are reassessing risks.
We currently project RGMs to grow by 4.6% on average in 2013 and more close to 6% in subsequent years.
Knight Frank India Real Estate (Jan-June 2017) ReportD Murali ☆
Knight Frank India Real Estate (Jan-June 2017) Report
Knight Frank-17H1
Kanchana Krishnan, Knight Frank on 17H1 January-June 2017 India Real Estate
(Residential, office)
Blog post link: http://bit.ly/2upCz7K
An SIP into an equity fund is much advocated. Have you ever thought of doing one into a debt fund? It would add to the overall stability of your portfolio.
Confused about the pulic sector stocks that are eligible under the Rajiv Gandhi Equity Savings Scheme? Here's to getting your doubts cleared.. An article by Fundsupermart.com
Monthly review of key market segments within India including Equity (Domestic and International), Fixed Income, Currency, Economic Indicators, Mutual Funds & Recommended Portfolios (India).
Monthly review of key market segments within India including Equity (Domestic and International), Fixed Income, Currency, Economic Indicators, Mutual Funds & Recommended Portfolios (India).
Monthly review of key market segments within India including Equity (Domestic and International), Fixed Income, Currency, Economic Indicators, Mutual Funds & Recommended Portfolios (India).
Monthly review of key market segments within India including Equity (Domestic and International), Fixed Income, Currency, Economic Indicators, Mutual Funds & Recommended Portfolios (India).
Monthly review of key market segments within India including Equity (Domestic and International), Fixed Income, Currency, Economic Indicators, Mutual Funds & Recommended Portfolios (India).
Ms Mayana Sobti Rajani, Vice President and Fund Manager, DSP BlackRock Mutual Fund shares her views on the equity market and discusses the positioning of DSP BlackRock Tax Saver Fund.
Monthly review of key market segments within India including Equity (Domestic and International), Fixed Income, Currency, Economic Indicators, Mutual Funds & Recommended Portfolios (India).
Monthly review of key market segments within India including Equity (Domestic and International), Fixed Income, Currency, Economic Indicators, Mutual Funds & Recommended Portfolios (India).
Monthly review of key market segments within India including Equity (Domestic and International), Fixed Income, Currency, Economic Indicators, Mutual Funds & Recommended Portfolios (India).
Sundaram Mutual Fund views on Economy and Markets!
1. Sundaram Mutual Fund views on Economy and Market
This is a brief outline of the conference call held on 13 December 2010 with Mrs Srividhya Rajesh, Fund
Manager, Sundaram Mutual Fund. The article covers Sundaram Mutual Fund views on Economy and
Markets.
Author: iFAST Research Team
Key Highlights
• Economic growth in second half of the financial year could be moderate.
• Bullish on long-term India story but in the short term, market looks expensive as compared to
historical valuation.
• Expects market to remain range bound for some time now.
• Liquidity in the equity market is totally driven by FIIs and reversal could happen depending upon
risk aversion in the global markets.
• Expect liquidity in the economy to remain tight for some more time.
• Expect earnings growth for FY12 to be around 20%.
• In terms of valuation, large cap stocks are more expensive than mid cap stocks.
Overview of the Equity Market and Indian Economy
Sundaram Mutual Fund was of the view that in the month of November, equity markets started
correcting towards the end of the month on the back of the Debt Crisis in Europe as well as some of the
peripheral European countries like Portugal and Spain. The markets were risk averse due to the crisis
and therefore India underperformed the other emerging and also developed markets. Because of the
crisis and risk aversion, the dollar also strengthened during November. As China started hiking rates on
the back of rising inflation and cooled down the investment boom, it also led to fear in the minds of
investors of an upcoming slowdown and this has resulted in impacting commodity demand and prices.
Ms Srividhya Rajesh was of opinion that macroeconomic indicators in India are showing some sign of
fatigue. Diesel consumption has been slowing down, Purchasing Manager and Manufacturing Index
numbers are hovering in a flat zone for the last few months, normal imports have come down in the last
few months primarily because of the base effect, and growth numbers are also looking slightly
dampened. Ideally, in the second half of the year, all the indicators should show growth, but due to
higher base, numbers will find it difficult to show very high growth. However, Sundaram Mutual fund
also views that the growth in economy should not come off significantly as consumption and investment
story continues to show improvement and hence will give support to growth numbers.
2. Investment numbers are showing conflicting signs, as GDP capital formation is looking favourable, but
the IIP numbers announced for September were disappointing. According to Business Outlook and
Confidence survey, capacity utilisation is very high, and corporate sector intends to start capital
expenditure though not in very high earnest right now. However expenditure by Government on
Infrastructure sector has been very slow especially in roads.
Performance of the Market
In the month of November the Indian market underperformed developed as well as other emerging
markets. November 2010 month performance as compared to past November months has been lower
than median return. Small and mid cap stocks have underperformed large cap companies in the month
of November, though mid cap and small cap stocks outperformed large cap in many months in this year.
Flows
Ms Srividhya Rajesh was of the view that the flows in Indian equity market continue to be driven by
Foreign Institutional Investors and domestic institutional flows have been very lacklustre. Insurance and
MF flows have been positive after several months, though still very meagre. Hence the concern is that
current liquidity is totally driven by foreigners and there is hardly any backing from domestic corporates
and institutions.
Bond Yield and Earning Yield Spread
Ms Srividhya Rajesh felt that the valuations after the recent correction are looking less expensive but
still high as compared to historical numbers and India continues to trade at a premium as compared to
other emerging markets. In comparison to bonds yield, equity valuations are looking stretched and
hence it could discourage further flow from foreign institutions.
Looking at earning numbers for the second quarter, she was of the view that sales growth continues to
be impressive across large and midcap companies in the second quarter whereas profit growth was
fairly strong in mid cap companies as compared to large cap companies. Cost pressure as well as
employee costs are rising for the companies. Consensus earnings growth for FY12 is around 20%.
Earning will be mainly driven by sectors like Energy, Material and Industrial and any rise in commodity
prices should help sectors like energy and materials.
Liquidity
Market liquidity is very tight and it is expected to remain tight as the next few months have lots of Initial
Public Offers lined up from the government and this will continue to keep stress on liquidity. Unless
foreign flows continue to supplement the demand, there will be some more tightness; however foreign
flows can be very volatile on the back of global risk aversion, like we saw in November. Ms Srividhya
3. Rajesh was of the view that government balances with Reserve Bank of India are huge and if the
government spends some of it on public expenditure it could ease the liquidity condition in the market.
Overall View on the Market
Markets across various aspects, be it liquidity, earning, flows and valuation, after some correction has
started looking a little bit reasonable from valuation perspective but still rich in comparison to history
numbers. There are signs of some improvement in developed markets as reflected in numbers but it is
too early to take a view on that. Long term issues like unemployment, pension liability gap still remain.
Developing markets showed strong recovery but will find it little bit difficult to continue to show strong
growth on higher base. Moreover, from India markets perspective, issues like high equity issuances, high
valuations and slightly slower growth on Y-o-Y basis can lead to some more correction in the market.
Domestic inflows have been weak and if there is some correction, risk aversion will reduce and we
would see some flow from domestic institutions. The view therefore is that the market will not give a
huge breakout on either side and will trade in a narrow range for some time now.
In the long term, money will keep on flowing from developed markets to developing markets, given
higher growth and hence there is a very optimistic view on the Indian market for longer term.
Valuations are higher for larger companies but in current environment quality is preferred due to
extreme risk aversion; investors prefer companies with good track record and strong corporate
governance. Hence some mid cap and small cap companies have underperformed significantly as
compared to their larger counterparts. There can be some reversion of this trade as risk taking capacity
of investors’ increases, which could result in some of the lower quality stocks coming up given the fall
they have suffered.
Disclaimer
This article is for information purpose only. This article and information do not constitute a distribution, an endorsement, an
investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial
products /investment products mentioned in this article or an attempt to influence the opinion or behaviour of the investors
/recipients. Any use of the information /any investment and investment related decisions of the investors/recipients are at their sole
discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives
of the specific person or group of persons. Opinions expressed herein are subject to change without notice.