Large Institutional Investors continue to be bullish on growth and worried about inflation. Buy-side earnings expectations are in line with the sell side. Investors expect modest rate hikes totaling to 50bp for the rest of the year and almost unchanged 10-year bond yields. The Sensex is expected to close the year 10% higher from current levels, although it may hit an intra-year high of around 19,500. About two-thirds of the surveyed investors expect India to continue to outperform emerging markets in 2010 and about half of them are overweight India in their portfolios. (more…)
Month: July 2010
Mcleod Russel India – Buy
BOFA Merrill is bullish on the prospects of Tea Business. North India crop was up 10% till April-2010, these gains will likely be offset
by a drop in production during May and June led by pest attack and excessive rains. Annual production will likely remain flat in FY11 vs industry estimate of 5% growth. Expect upward movement in tea prices ahead, led by i) increasing shortage, ii) seasonal improvement in quality and iii) increased presence of institutional buyers.
Kenya and Sri Lanka form over 25% of global black tea produced and saw 33% YoY scale up in production to normal levels till (more…)
RNRL + Reliance Power – Merger of Two Empty / Shell Companies
Reliance Natural Resources’ (RNRL) and Reliance Power’s boards of directors will meet on July 4, to consider the merger of two Anil Dhirubhai Ambani Group (ADAG) companies. The companies have not yet disclosed any details of the proposed merger.
RNRL is a Shell company which was supposed to get Gas from RIL but failed to secure so after Master Manipulation by RIL and the (more…)
Axis Triple Advantage Fund – Review
Axis Triple Advantage Fund, seeks to help investors take advantage of the benefits of diversification by investing in a mix of three asset classes viz. Equity, Bonds and Gold.
Equity – Long Term Growth Stocks – Most volatile with a 30-40% allocation
Bonds – “Classical” diversification in portfolio Low risk compared to stocks with 30-40% allocation (more…)