Indian Equity Research and Investment Strategy
India is all set to become a $5Trillion Dollar Economy in GDP terms by 2025. Backtracking the numbers, Financial services will be a big beneficiary – of this growth. According to Morgan Stanley, for this GDP growth to be achieved, the financial services sector will need to grow in the high teens over the decade.
The last three years have not been kind to the India Financials. The persistent economic slowdown and high interest rates caused default levels to rise (more…)
The White Paper on Black Money[Non Tax Paid] in India makes for very good background reading on various ways of generating black money: the paper focuses on black money generated via non-disclosure to public authorities rather than that generated from illegal activities.
How is Black Money Generated in India ?
Eighteen ways of manipulating accounts to (more…)
The Equity Market is the Only Market with Ocean of Opportunities. However, this is a Game for Smart or rather Extremely Smart Investors to make Big Money. In order to educate Investors with the Zeal and Caliber to spot the next Multibagger, we’d like to enlighten about certain Sunrise Sectors which throw this opportunity without mentioning any stock and we’ll leave to the readers to spot the stock and write as comment.
One of the Most prominent sector to spot multi-baggers is Specialised infrastructure and related services – In the last bull run we saw the rise (and fall) of infrastructure companies involved in more plain-vanilla businesses like (more…)
Indian Retail investors obsess about headline index levels, often missing out the main contributors for the rapid rise in the SENSEX. Investors get the market direction correct, but end up with stocks in their portfolios that are under-performing the market. One of the common reasons this happens, is because of the tendency of investors to look at the big winners of the previous bull market and to assume that they would re-emerge as winners in the next bull run. In the bust that follows the boom, the leaders of the previous bull run, after an exaggerated rally, typically see a very sharp correction in stock prices.
Consider the case of (more…)
The Business oriented Government of Shri Modi Ji indicates a sharp pickup in economic growth in FY 2016 and slow the bad loan formation for Indian banks with strong possibility of recovery of restructured assets. Credit costs should stay elevated, given low coverage levels right now – but likely to be lower than our earlier estimates.
PSU banks like SBI, PNB etc need significant amounts of capital, given the weakness of tier 1, regulatory catch-up, unprovisioned NPL’s, and to fund economic growth. Stronger government raises hope that banks will be properly capitalized rather than piecemeal approach, which has been adopted till now by the previous impotent Congress Govt. To give a shot (more…)
Shri Narendra Modi, led BJP has emerged Victorious beyond expectations decimating the Corrupt & Paralyzed Congress which killed the Indian Economy. This is a decisive electoral verdicts since 1984 with the pre poll NDA alliance surpassing the most optimistic forecasts. The political platform now delivered to the NDA is historic and should result in a simultaneous revival of investor, consumer and corporate confidence. With the economy and the investment cycle at the center focus of the new government, equity markets are likely to react to the verdict with euphoria.
India is entering its fourth wave. In the previous three waves, more than two-thirds of all stockmarket returns have come in the first three years.
While the budget will now emerge as the next key milestone for the market, investors should begin to assess what the next government (more…)