This report provides an analysis and outlook of the Indian stock market. It recommends remaining invested in India as the economic outlook remains bright, but notes valuations already reflect this. Specific sectors like consumer, materials, IT and telecom are highlighted as likely to perform well. A strong monsoon would boost rural areas more than urban. Medium size companies may benefit most from new policies. The overall market is given a target of 29750 on the BSE SENSEX, representing a 6% upside. Risks discussed include a global slowdown, rising inflation or commodity prices, and domestic political issues.
Market outlook April 2021 - ICICI Prudential Mutual Fundiciciprumf
The resurgence of the pandemic may delay the recovery and growth of the Indian Economy. And with limited room for rate cuts going forward, investors could benefit from active duration management and accrual strategies.
To know more, read our Market Outlook for April 2021.
Despite setbacks, the market is on a positive note. What else is in store and how is it going to perform under pressure? Explore all that in our Monthly Market Outlook for April.
#ICICIPrudentialMutualFund #MonthlyMarketOutlook #April #Global #India #MutualFund
The document discusses why India presents an attractive long-term investment opportunity. In 3 sentences:
India has strong economic fundamentals like its large democracy and population, rapid digitization, and growing forex reserves that position it well to sustain high growth over the coming decades. Key sectors like IT, private banking and insurance are experiencing value migration from public to private players and have potential for continued strong growth. While COVID-19 caused a temporary slowdown, vaccination rollout marks the beginning of the end of the pandemic and India's recovery is expected to outpace global growth, supporting the argument that the long-term outlook for Indian markets remains positive.
ASK Growth India Fund Presentation_Final.pdfEquityInvest
This document discusses the growth opportunities in India across multiple sectors of the economy such as consumption, manufacturing, exports, financing, infrastructure and digitization. It highlights India's strong economic growth outlook with GDP expected to cross $5 trillion by 2026-27. Various data points are presented showing increasing disposable incomes, expanding workforce, rising exports, improving profitability, large infrastructure spending and increasing digitization creating opportunities over the long term. Key reforms around GST, insolvency code etc are also noted as driving growth. Overall the document paints an optimistic picture of India's economic potential.
"• National Financial Services Operation hub
• Regional/Functional head quarters for financial service players
• National headquarters for players
• Private banking hub for NRIs/Regional HNWs
• International Micro-finance hub
• International commodity trade hub
• Participation in global capital markets
• Global hub for IT services for financial services sector
• Global hub for BPO services for financial services sector
Market outlook April 2021 - ICICI Prudential Mutual Fundiciciprumf
The resurgence of the pandemic may delay the recovery and growth of the Indian Economy. And with limited room for rate cuts going forward, investors could benefit from active duration management and accrual strategies.
To know more, read our Market Outlook for April 2021.
Despite setbacks, the market is on a positive note. What else is in store and how is it going to perform under pressure? Explore all that in our Monthly Market Outlook for April.
#ICICIPrudentialMutualFund #MonthlyMarketOutlook #April #Global #India #MutualFund
The document discusses why India presents an attractive long-term investment opportunity. In 3 sentences:
India has strong economic fundamentals like its large democracy and population, rapid digitization, and growing forex reserves that position it well to sustain high growth over the coming decades. Key sectors like IT, private banking and insurance are experiencing value migration from public to private players and have potential for continued strong growth. While COVID-19 caused a temporary slowdown, vaccination rollout marks the beginning of the end of the pandemic and India's recovery is expected to outpace global growth, supporting the argument that the long-term outlook for Indian markets remains positive.
ASK Growth India Fund Presentation_Final.pdfEquityInvest
This document discusses the growth opportunities in India across multiple sectors of the economy such as consumption, manufacturing, exports, financing, infrastructure and digitization. It highlights India's strong economic growth outlook with GDP expected to cross $5 trillion by 2026-27. Various data points are presented showing increasing disposable incomes, expanding workforce, rising exports, improving profitability, large infrastructure spending and increasing digitization creating opportunities over the long term. Key reforms around GST, insolvency code etc are also noted as driving growth. Overall the document paints an optimistic picture of India's economic potential.
"• National Financial Services Operation hub
• Regional/Functional head quarters for financial service players
• National headquarters for players
• Private banking hub for NRIs/Regional HNWs
• International Micro-finance hub
• International commodity trade hub
• Participation in global capital markets
• Global hub for IT services for financial services sector
• Global hub for BPO services for financial services sector
Monthly Market Outlook (November 2021) | ICICI Prudential Mutual Fundiciciprumf
Equity Outlook: Equity markets pacing ahead now the Economy prepares to catch up.
Fixed income: RBI policy normalisation process may result in short-term rates moving higher and reduction in steepness of yield curve.
As there has been a trend of performance concentration across market cycles, different investment styles may perform at different phases of a market cycle. Our Market Outlook for November 2020
• Owing to growth concerns, Global Central Banks are reducing interest rates. The Reserve Bank of India
(RBI) too is expected to follow suits and may deliver 25-50 bps rate cut
• Central Banks are expected to continue with the loose monetary policy
• Food inflation is beginning to see some moderation although CPI Inflation continues to remain above
RBI‟s comfort zone. RBI‟s operation twist and LTRO too bodes well for the bond markets
• In light of the above factors, we have added duration across our portfolios as we have become positive
on the duration segment in the near term
• We continue to believe that the best strategy would be to create portfolio maturity in the range of 2-5
years
• We also continue to remain positive on the accrual space, as the divergence between Gsec/AAA & AA/A
yields persist.
This document provides information about the IDFC Dynamic Equity Fund, including its category, average assets under management, inception date, fund managers, standard deviation, asset allocation, market cap split, minimum investment amount, exit load, SIP frequency, dividend options, and benchmark. The fund follows a dynamic asset allocation model that adjusts its equity exposure between 30-40% based on the trailing P/E of the Nifty 50 index. As of February 2021, the fund had 35.5% net equity exposure and invested primarily in large cap stocks across sectors like banks, software, finance, auto ancillaries, and pharmaceuticals. The debt portion aims for high credit quality and short-medium duration.
This document provides information about the IDFC Dynamic Equity Fund, including its category, average assets under management, inception date, fund managers, standard deviation, asset allocation, market cap split, minimum investment amount, exit load, SIP frequency, dividend options, and benchmark. The fund follows a dynamic asset allocation model that adjusts its equity exposure between 30-40% based on the trailing P/E of the Nifty 50 index. As of February 2021, the fund had 35.5% net equity exposure and invested primarily in large cap stocks across sectors like banks, software, finance, auto ancillaries, and pharmaceuticals. The debt portion aims for high credit quality and short-medium duration.
This document provides information about the IDFC Dynamic Equity Fund, including its features, fund managers, asset allocation, sector allocation, and outlook. The key points are:
- The fund uses a dynamic model to determine equity allocation between 30-40% based on the trailing P/E of the Nifty 50 index. Higher P/E means lower equity allocation.
- As of December 2020, the fund's gross equity allocation was 66.44% and net equity was 37.14%. The largest sector allocations were to software, banks, and finance.
- The fund maintains a quality focus for stocks and aims to benefit from economic recovery by investing in sectors like small caps that may outperform.
This document discusses IDFC Large Cap Fund, an equity fund that predominantly invests in large cap stocks. It highlights the advantages of large caps such as high liquidity, established track records, reputable management, and financial resilience. The fund employs a three pillar strategy of buying the right sectors, sector leaders, and tactically allocating to mid/small caps. It is currently overweight in telecom, IT, and consumer staples sectors and underweight in financials, commodities, and utilities. The minimum investment amount is Rs. 5,000 with no exit load.
This document discusses IDFC Large Cap Fund, an equity scheme that predominantly invests in large cap stocks. It highlights the advantages of large caps such as high liquidity, established track records, reputable management, and financial resilience. The fund aims to provide upside return potential with relatively low volatility by investing in industry leaders and taking a blend of top-down and bottom-up approaches. It demonstrates how the fund's sector allocation and focus on buying sector leaders has helped returns. Currently, the fund is overweight in telecom, IT and consumer staples sectors while underweight in financials, commodities and utilities.
The document discusses the IDFC Core Equity Fund, a large and mid cap equity fund that invests in both large and mid cap stocks. It aims to provide the steady returns of large caps with the higher growth potential of mid caps. The fund uses a 3-factor model to identify quality stocks with strong cash generation, high returns on capital, and manageable debt levels. Currently, it has a cyclical sector bias and overweight positions in sectors like cement and IT. The fund performance has outpaced benchmarks over the past 1 and 3 years.
IDFC Core Equity Fund is an open-ended equity scheme that invests in both large and mid-cap stocks. The fund aims to provide the steady returns of large caps along with the higher growth potential of mid caps. It uses a 3-factor model to identify quality stocks with strong cash generation, high returns on capital, and manageable debt levels. Currently, the fund focuses on analyzing financial track records, relative value, and sector outlooks. It has a larger allocation to cyclical sectors compared to its benchmark index and is overweight in sectors like cement and information technology.
HDFC BANK CASE STUDY IN PERFORMANCE IN INDIA INDUSTRY .pdfanandhr22
The document is a presentation by HDFC Bank providing an overview of the bank's performance and priorities for 2023. Some key points:
1. The CEO has identified growth strategy, customer engagement, technology excellence, and harnessing people capabilities as priorities.
2. HDFC Bank is well positioned for attractive macroeconomic conditions in India including rising affluence and digital adoption.
3. In FY2023 HDFC Bank saw advances growth of 17% and deposit growth of 21% with an ROA of 2.1% and gross NPA of 1.12%, demonstrating continued strong financial performance.
This document contains a presentation by HDFC Bank from May 2023. It discusses the bank's positioning for growth given attractive macroeconomic variables in India. It highlights the bank's continued strong financial performance in FY2023, with advances growth of 17% and deposits growth of 21%. The presentation outlines the CEO's priorities of focusing on employees, customers, and technology. It also discusses the bank's distribution strength, diversified loan book, and consistent risk management that have enabled its leading financial performance.
Decoding the Union Budget 2022 and its Impact on Your InvestmentsQuantumMutualFund
What are the hits and misses of the Union Budget 2022-23? What is the impact on asset outlook for equity, debt and gold? Explore answers to these questions from the webinar deck on ‘Decoding the budget and its impact on your investments’ sharing valuable insights and outlook for the new financial year.
www.Quantumamc.com
Triggers to watch out for -
1. General Election Outcome
2. Key Reforms Implemented over 5 years
3. Analysis of market returns post-election
4. High-frequency indicators
5. FPI flows trend
A detailed insight into a monthly equity and fixed income market outlook.
Read the full document to know more.
This document analyzes financial ratios for Bharathi Cement Company over five years. It finds that the company's current and quick ratios indicate sufficient current assets to meet liabilities. Profitability ratios like net profit ratio have been decreasing since 2016-17, suggesting ineffective costs. Activity ratios show mostly positive trends, with fixed asset turnover and debtor's turnover ratios increasing in recent years. However, working capital turnover declined in 2018-19, potentially due to inefficient working capital use. Leverage ratios like debt-equity have fluctuated over the period but were highest in 2016-17, indicating greater risk from higher debt levels that year.
This document analyzes financial ratios for Bharathi Cement Company over five years. It finds that the company's current and quick ratios indicate sufficient current assets to meet liabilities. Profitability ratios like net profit ratio have been decreasing since 2016-17, suggesting ineffective costs. Activity ratios such as fixed asset turnover and debtor's turnover generally increased over time, while working capital turnover decreased in 2018-19, indicating inefficient working capital use. Leverage ratios like debt-equity were highest in 2016-17 and 2017-18, showing the company may have difficulty meeting debt obligations during those periods. Overall the analysis finds mixed financial performance with some ratios satisfactory but others indicating room for improvement.
Monthly Asia Presentation December 2014Cedric Chehab
The document outlines key macroeconomic and political themes for Asia in 2015 according to Business Monitor International. Some continuing themes from 2014 include China's economy slowing below 7% as financial reforms pick up and regional property markets posing policy challenges. New themes include India and Indonesia seeing reforms spur faster growth while Japan risks stagflation. Sectors like power, agribusiness, telecoms, autos and pharmaceuticals are also analyzed.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
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Monthly Market Outlook (November 2021) | ICICI Prudential Mutual Fundiciciprumf
Equity Outlook: Equity markets pacing ahead now the Economy prepares to catch up.
Fixed income: RBI policy normalisation process may result in short-term rates moving higher and reduction in steepness of yield curve.
As there has been a trend of performance concentration across market cycles, different investment styles may perform at different phases of a market cycle. Our Market Outlook for November 2020
• Owing to growth concerns, Global Central Banks are reducing interest rates. The Reserve Bank of India
(RBI) too is expected to follow suits and may deliver 25-50 bps rate cut
• Central Banks are expected to continue with the loose monetary policy
• Food inflation is beginning to see some moderation although CPI Inflation continues to remain above
RBI‟s comfort zone. RBI‟s operation twist and LTRO too bodes well for the bond markets
• In light of the above factors, we have added duration across our portfolios as we have become positive
on the duration segment in the near term
• We continue to believe that the best strategy would be to create portfolio maturity in the range of 2-5
years
• We also continue to remain positive on the accrual space, as the divergence between Gsec/AAA & AA/A
yields persist.
This document provides information about the IDFC Dynamic Equity Fund, including its category, average assets under management, inception date, fund managers, standard deviation, asset allocation, market cap split, minimum investment amount, exit load, SIP frequency, dividend options, and benchmark. The fund follows a dynamic asset allocation model that adjusts its equity exposure between 30-40% based on the trailing P/E of the Nifty 50 index. As of February 2021, the fund had 35.5% net equity exposure and invested primarily in large cap stocks across sectors like banks, software, finance, auto ancillaries, and pharmaceuticals. The debt portion aims for high credit quality and short-medium duration.
This document provides information about the IDFC Dynamic Equity Fund, including its category, average assets under management, inception date, fund managers, standard deviation, asset allocation, market cap split, minimum investment amount, exit load, SIP frequency, dividend options, and benchmark. The fund follows a dynamic asset allocation model that adjusts its equity exposure between 30-40% based on the trailing P/E of the Nifty 50 index. As of February 2021, the fund had 35.5% net equity exposure and invested primarily in large cap stocks across sectors like banks, software, finance, auto ancillaries, and pharmaceuticals. The debt portion aims for high credit quality and short-medium duration.
This document provides information about the IDFC Dynamic Equity Fund, including its features, fund managers, asset allocation, sector allocation, and outlook. The key points are:
- The fund uses a dynamic model to determine equity allocation between 30-40% based on the trailing P/E of the Nifty 50 index. Higher P/E means lower equity allocation.
- As of December 2020, the fund's gross equity allocation was 66.44% and net equity was 37.14%. The largest sector allocations were to software, banks, and finance.
- The fund maintains a quality focus for stocks and aims to benefit from economic recovery by investing in sectors like small caps that may outperform.
This document discusses IDFC Large Cap Fund, an equity fund that predominantly invests in large cap stocks. It highlights the advantages of large caps such as high liquidity, established track records, reputable management, and financial resilience. The fund employs a three pillar strategy of buying the right sectors, sector leaders, and tactically allocating to mid/small caps. It is currently overweight in telecom, IT, and consumer staples sectors and underweight in financials, commodities, and utilities. The minimum investment amount is Rs. 5,000 with no exit load.
This document discusses IDFC Large Cap Fund, an equity scheme that predominantly invests in large cap stocks. It highlights the advantages of large caps such as high liquidity, established track records, reputable management, and financial resilience. The fund aims to provide upside return potential with relatively low volatility by investing in industry leaders and taking a blend of top-down and bottom-up approaches. It demonstrates how the fund's sector allocation and focus on buying sector leaders has helped returns. Currently, the fund is overweight in telecom, IT and consumer staples sectors while underweight in financials, commodities and utilities.
The document discusses the IDFC Core Equity Fund, a large and mid cap equity fund that invests in both large and mid cap stocks. It aims to provide the steady returns of large caps with the higher growth potential of mid caps. The fund uses a 3-factor model to identify quality stocks with strong cash generation, high returns on capital, and manageable debt levels. Currently, it has a cyclical sector bias and overweight positions in sectors like cement and IT. The fund performance has outpaced benchmarks over the past 1 and 3 years.
IDFC Core Equity Fund is an open-ended equity scheme that invests in both large and mid-cap stocks. The fund aims to provide the steady returns of large caps along with the higher growth potential of mid caps. It uses a 3-factor model to identify quality stocks with strong cash generation, high returns on capital, and manageable debt levels. Currently, the fund focuses on analyzing financial track records, relative value, and sector outlooks. It has a larger allocation to cyclical sectors compared to its benchmark index and is overweight in sectors like cement and information technology.
HDFC BANK CASE STUDY IN PERFORMANCE IN INDIA INDUSTRY .pdfanandhr22
The document is a presentation by HDFC Bank providing an overview of the bank's performance and priorities for 2023. Some key points:
1. The CEO has identified growth strategy, customer engagement, technology excellence, and harnessing people capabilities as priorities.
2. HDFC Bank is well positioned for attractive macroeconomic conditions in India including rising affluence and digital adoption.
3. In FY2023 HDFC Bank saw advances growth of 17% and deposit growth of 21% with an ROA of 2.1% and gross NPA of 1.12%, demonstrating continued strong financial performance.
This document contains a presentation by HDFC Bank from May 2023. It discusses the bank's positioning for growth given attractive macroeconomic variables in India. It highlights the bank's continued strong financial performance in FY2023, with advances growth of 17% and deposits growth of 21%. The presentation outlines the CEO's priorities of focusing on employees, customers, and technology. It also discusses the bank's distribution strength, diversified loan book, and consistent risk management that have enabled its leading financial performance.
Decoding the Union Budget 2022 and its Impact on Your InvestmentsQuantumMutualFund
What are the hits and misses of the Union Budget 2022-23? What is the impact on asset outlook for equity, debt and gold? Explore answers to these questions from the webinar deck on ‘Decoding the budget and its impact on your investments’ sharing valuable insights and outlook for the new financial year.
www.Quantumamc.com
Triggers to watch out for -
1. General Election Outcome
2. Key Reforms Implemented over 5 years
3. Analysis of market returns post-election
4. High-frequency indicators
5. FPI flows trend
A detailed insight into a monthly equity and fixed income market outlook.
Read the full document to know more.
This document analyzes financial ratios for Bharathi Cement Company over five years. It finds that the company's current and quick ratios indicate sufficient current assets to meet liabilities. Profitability ratios like net profit ratio have been decreasing since 2016-17, suggesting ineffective costs. Activity ratios show mostly positive trends, with fixed asset turnover and debtor's turnover ratios increasing in recent years. However, working capital turnover declined in 2018-19, potentially due to inefficient working capital use. Leverage ratios like debt-equity have fluctuated over the period but were highest in 2016-17, indicating greater risk from higher debt levels that year.
This document analyzes financial ratios for Bharathi Cement Company over five years. It finds that the company's current and quick ratios indicate sufficient current assets to meet liabilities. Profitability ratios like net profit ratio have been decreasing since 2016-17, suggesting ineffective costs. Activity ratios such as fixed asset turnover and debtor's turnover generally increased over time, while working capital turnover decreased in 2018-19, indicating inefficient working capital use. Leverage ratios like debt-equity were highest in 2016-17 and 2017-18, showing the company may have difficulty meeting debt obligations during those periods. Overall the analysis finds mixed financial performance with some ratios satisfactory but others indicating room for improvement.
Monthly Asia Presentation December 2014Cedric Chehab
The document outlines key macroeconomic and political themes for Asia in 2015 according to Business Monitor International. Some continuing themes from 2014 include China's economy slowing below 7% as financial reforms pick up and regional property markets posing policy challenges. New themes include India and Indonesia seeing reforms spur faster growth while Japan risks stagflation. Sectors like power, agribusiness, telecoms, autos and pharmaceuticals are also analyzed.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
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My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
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A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
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India Equity Strategy Presentation (2016) - HSBC
1. <Country>
Issuer of report:
Disclosures & Disclaimer: This report must be
read with the disclosures and the analyst
certifications in the Disclosure appendix, and with
the Disclaimer, which forms part of it
India Strategy
EQUITIES - INDIA 17 Aug 2016
Dimitar Stoyanov
Summer Associate
The Hongkong and Shanghai Banking
Corporation Limited
dimitar.krasimirov.stoyanov@hsbc.com.hk
+852 2822 4297
2. Contents
Executive summary
• India has the brightest economic outlook in the region but this is already reflected in the current valuations
• The upward momentum is likely to continue for some time but in the long-run the upside potential is limited
• Market sentiment reversal due to disappointing data or any catalyst event could lead to a spike in volatility and selloff
• In order to achieve good performance, focus on specific sectors, catalyst events and consumer behaviour trends
• The sectors which are most likely to perform well are Consumer, Materials, IT and Telecoms
• A strong Monsoon will have a greater positive impact on the companies with high rural exposure than on the ones
with urban exposure
• Medium size companies will benefit most from the Goods and Services Tax Bill and the Monsoon
• BSE SENSEX TP 29750 INR UPSIDE +6% 2
1
• Market structure
2
• Market performance
3
• Market characteristics
4
• Earnings and profitability
5
• Valuations and sentiment
6
• News and risks
7
• Investing in India
8
• Market outlook
3. Market structure
Underweight on two of the most important sectors for high value added production – IT, Financials
and overweight on Healthcare and Consumer
3
19%
16%
12%
11%
8%
7%
6%
5%
5%
11%
Industry Weights
Software &
Services
Banks
Automobiles &
Components
Pharmaceuticals
Energy
Materials
Food Beverage &
Tobacco
Capital Goods
Source: MSCI
19%
18%
14%
11%
11%
9%
7%
6%3%
Sector Weights
Information Technology
Financials
Consumer Discretionary
Health Care
Consumer Staples
Energy
Materials
Industrials
Telecommunication Services
Utilities
Source: MSCI
Source: Bloomberg
Top 10 listed companies
Ticker Short Name Sector Weight
TCS IN
TATA
CONSULTANCY IT 4.90%
RIL IN RELIANCE INDS Energy 3.00%
ITC IN ITC
Consumer
Staples 2.90%
HDFCB IN HDFC BANK Financials 2.90%
INFO IN INFOSYS IT 2.30%
HDFC IN HOUSING DEV FIN Financials 2.00%
COAL IN COAL INDIA Energy 1.90%
HUVR IN HINDUSTAN UNILEV
Consumer
Staples 1.80%
SUNP IN SUN PHARMA INDU Health Care 1.80%
ONGC IN OIL & NATURAL GAS Energy 1.70%
4. Market performance
4
0
200
400
600
800
1000
1200
2009 2010 2011 2012 2013 2014 2015 2016
USD Relative performance
MSCI ASIA MSCI INDIA
MSCI BRIC Linear (MSCI INDIA)
Source: Bloomberg
0
300
600
900
1200
1500
1800
2009 2010 2011 2012 2013 2014 2015 2016
USD Large Cap - Small Cap
MSCI India Large Cap MSCI India Small Cap
Source: Bloomberg
0%
10%
20%
30%
40%
50%
60%
70%
2012 2013 2014 2015 *2016
Rural exposure Urban exposure
Rural – Urban performance
Source: HSBC
-20% 30% 80% 130%
Health Care
Consumer Staples
Consumer Discretionary
Information Technology
Financials
Materials
Energy
Industrials
Telecom Services
Utilities
Sector performance
YTD 1 year 5 years
Source: Bloomberg
MSCI India has outperformed MSCI Asia with 49% and MSCI BRIC with 73% over the last five years
Stocks with rural exposure have outperformed stocks with urban exposure with 33% since 2009
but have underperformed in the last years
5. Market characteristics
5
-50
0
50
100
150
200
250
-0,5
0
0,5
1
1,5
2
2011 2012 2013 2014 2015 2016
Thousands
USDbn
Thousands
Net Fund flows
Net Foreign Equity Investment
Domestic Mutual Fund Flows
Source: Bloomberg
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016
INRm Trading volume
Source: Bloomberg
0%
10%
20%
30%
40%
50%
2011 2012 2013 2014 2015 2016
SD Volatility
MSCI India MSCI China
MSCI Asia MSCI Emerging markets
Source: Bloomberg
India has received USD1.3bn from foreign financial institutions in July and USD120bn since 2007
High correlation with S&P and US data, despite the lower exports as % of GDP
Correlations
MSCI India MSCI Asia x JP
S&P 500 0.8 0.69
Oil 0.6 0.77
Gold 0.82 0.82
India GDP 0.83
India PMI 0.44 0.31
India interest rate -0.43 -0.34
China PMI -0.33 -0.14
6. Earnings and profitability
6
0%
5%
10%
15%
20%
2008 2009 2010 2011 2012 2013 2014 2015
Profitability
ROA ROI ROE Div Yield
Source: Bloomberg
-10 0 10 20 30 40 50
Energy
Materials
Industrials
Consumer disc
Consumer staples
Health care
Financials
Technology
Telecoms
Utilities
India
EPS growth
2016e 2017e
Source: Bloomberg, HSBC
-20%
-10%
0%
10%
20%
30%
40%
ID TS FN EN HC CS IT CD UT MT India
3-month 6-month
Earnings momentum
Source: HSBC Data as of 20/07/16
0%
10%
20%
30%
40%
50%
60%
70%
80%
IT TS HC FN CD ID CS UT EN MT India
EPS revision ratio
Source: HSBC Data as of 20/07/16, 12MTH FWD
Profitability and leverage levels are declining
Materials and Utilities are gaining momentum
7. Valuations and sentiment
7
INDIA ASIA BRIC
Current 2016E 2017E Current 2016E 2017E Current 2016E 2017E
Valuation Metrics
P/E 22.9 18.1 15.1 12.9 12.9 11.6 13.6 11.9 10.3
P/B 3.1 2.8 2.5 1.4 1.3 1.2 1.5 1.3 1.2
EV/Sales 2.9 2.5 2.2 1.6 1.5 1.4 1.9 1.7 1.6
EV/EBITDA 12.3 11.8 9.9 9.1 9.0 8.1 9.7 8.7 7.6
Div. Yield 1.4 1.6 1.8 2.8 2.7 2.9 2.8 2.6 2.9
Fundamentals
Gross Margin 21.9 27.9
Operating
Margin 13.7 11.6 13.6
Profit Margin 9.6 9.5 10.3
ROA 3.5 3.3 3.7 2.3 1.2 1.2 2.1 0.7 0.8
ROE 14.1 14.3 15.3 11.6 12.6 12.1 11.8 8.6 9.1
Analyst recommendation score
Current 3.7 4.1
Long-term 3.8 4.0
1
3
5
7
сеп.02 сеп.05 сеп.08 сеп.11 сеп.14
P/B ratio
India India Long-term
MSCI EM MSCI ASIA
Source: Bloomberg
5
10
15
20
25
30
сеп.02 сеп.05 сеп.08 сеп.11 сеп.14
P/E ratio
India India Long-term
MSCI EM MSCI Asia
MSCI China 2 per. Mov. Avg. (India)
Source: Bloomberg
India is trading at a significant premium to ASIA and BRIC
Source: Bloomberg
8. News and Risks
I. News
• A strong monsoon season is expected to boost rural income and consumption
• Goods and Service Tax Bill to encourage investments and lower transaction costs
• Appointment of a new central bank governor and monetary policy
II. Risks
• Weakening of global trade and demand could slowdown the growth rate
• An increase in commodity prices will impact negatively the government deficit
• Increase in inflation rate would decrease the purchasing power of the rural population and its consumption
• Political problems related to the Goods and Service Tax Bill or tensions with Pakistan
• An eventual US interest rate hike would increase the amount of non-performing loans and the debt burden for
companies
• Re-evaluation of earnings growth
8
9. Investing in India
1. Invest directly
• Open an Portfolio investment scheme (PIS) of the Reserve Bank of India(RBI)
• Open a trading account with Sebi-registered brokerage firm
2. Purchase ADR’s
3. Invest in an ETF with geographic focus India
9
Tax rates
Capital gain Public Private
Shor-term 15% 30%
Long-term 0% 10%
Dividend tax
10%-15% bracket 0%
25%-35% bracket 15%
Indian ETFs
Ticker Name
Size
USDbn
Price
USD
NAV
Prem %
T/O
USDm
INDA US
Index
Ishares India ETF -
INDA
4.1 29.67 0.37 48.1
EPI US
Index
Wisdomtree India -
EPI
1.5 21.55 0.14 51.4
INDY US
Index
Ishares Nifty ETF -
INDY
0.8 29.86 0.23 2.9
SCIF US
Index
Market Vectors India
SC -SCIF
0.2 43.88 -0.39 0.1
PIN US
Equity
Powershares India
Port - PIN
0.4 20.74 0.20 7.2
INP US
Equity
IPATH MSCI -INP 0.2 69.99 0.44 0.6
INDL US
Equity
India Daily Bull -INDL 0.1 59.80 -0.15 1.0
Source: Bloomberg
10. Market outlook
1. Recommended sectors
Consumer Discretionary
Materials
2. Recommended stocks
3. BSE SENSEX
TP 29750 INR Upside: +6%
Based on
2017 P/E – 18.5
2016 P/E – 20.6 and 18% EPS growth in 2017
10
0%
50%
100%
150%
200%
250%
300%
350%
400%
2011-
03
2012-
01
2012-
11
2013-
09
2014-
07
2015-
05
2016-
03
Google Web searches
Tyres Fertilizers Chemicals
Source: Google Trends
Source: Bloomberg
Top 10 stocks
Ticker Company Sector
Market
cap
USDbn P/E P/B EV/EBITDA
APTY IN
APOLLO
TYRES
Consumer
Disc 1.3 7.9 1.4 4.8
MRF IN MRF
Consumer
Disc 2.3 2.2
SRF IN SRF
Consumer
Disc 1.4 21.5 3.4 11.5
TTCH IN
TATA
CHEMICALS Materials 1.9 16.2 2 9.3
GRASIM
IN
GRASIM
INDS Materials 6.4 18.1 1.7 8.7
OINL IN OIL INDIA Energy 3.3 11.1 1 6.5
HCLT IN HCL TECH IT 17.2 14.9 4.3 11.8
TECHM
IN
TECH
MAHINDRA IT 7.2 14.5 2.8 9.9
IDEA IN
IDEA
CELLULAR Telecom 5.1 14.3 1.4 5.5
BHARTI
IN
BHARTI
AIRTEL Telecom 20.8 25.8 2.2 6.7