What’s going on with Indian IPOs? Poor demand, increased competition for retail investment or bad news from companies that went before?
Whatever the reason, fundraising via initial public offerings in the 2012-13 year has been rather flat in India. Companies raised just over Rs60bn ($1.1bn) via IPO in the fiscal year just ended – that’s an increase of only 4 per cent year-on-year, according to stock exchange data seen by the Press Trust of India. Continue reading »
Banks and investment companies are increasingly targeting the United Arab Emirates to attract funds into Indian equities as they seek to capitalise on its large population of wealthy Indians and close trade links, writes Camilla Hall.
Natixis global asset management launched a new Indian equity fund in the UAE last month while Dubai’s Gold & Commodities Exchange set up a new derivative to allow investors to track India’s stock market. Continue reading »
In the middle of January, India’s benchmark Sensex index touched the psychological 20,000 mark. It has since tumbled, closing at 19,271.35 on Wednesday dragged down by profit-taking, pessimism and a disappointing government budget. Continue reading »
Shopping centre, Gurgaon. Photo: Bloomberg
Some 31 per cent of India’s 1.2bn people live in towns and cities according to India’s 2011 census, up from 28 per cent in the 2001 census.
Now the process of urbanisation is speeding up and it is tier 2 and tier 3 cities that are leading the way, argue Sheela Rathi and colleagues at Morgan Stanley in a report published this week.
It’s a theme that will affect businesses, investors and policymakers alike. Continue reading »
What makes a company worth a quarter less than it was yesterday? Shares in National Hydroelectric Power Corporation (NHPC), the state-owned hydro power group, tumbled 24.1 per cent on Monday to Rs19.65.
The fall adds to unexplained heavy selling in mid-cap stocks last week, which is currently being investigated by the Securities and Exchange Board of India (Sebi). Continue reading »
Last September, the Indian government unveiled a reform agenda designed to build investor confidence. Foreign institutional investors have sent Indian stocks soaring in response.
But it seems private equity investors are more difficult to convince. Continue reading »
A glut of new investment products appeared in India over the weekend, designed to bring first-time retail investors into the country’s stock markets with a generous tax break. Good news, surely? Well, characteristically for India’s asset management industry, the truth is more complicated than it needs to be. Continue reading »
Need a safety net?
The IPO of Sai Silks (Kalamandir), the Indian clothing retailer, launches on Monday. And the company is laying down a safety net for potential investors – a controversial measure that the Securities and Exchange Board of India (Sebi) is considering making mandatory. Continue reading »
Shares in Oil India dropped 1.4 per cent on Friday to Rs532.90, as the Indian government opened an offer for sale for 10 per cent of the state-run company. But with Delhi offering stock for as little as Rs510, many analysts see a buying opportunity – particularly if government plans for energy market reform accelerate. Continue reading »
In September, the Indian government announced a spurt of policy initiatives greeted by commentators as a return to the reformist zeal shown in the early days of prime minister Mohamed Singh’s eight years in power. This “big bang”, designed to re-ignite economic growth, was also expected to reawaken interest in Indian equities among foreign investors. But investor interest in some Indian companies actually plateaued after the package was announced, according to new research.
How should equity investors respond? Continue reading »
Investors can be a fickle lot when it comes to Indian IT.
After results earlier in the week from Infosys and Tata Consultancy Services far exceeded expectations, Wipro’s strong profits growth wasn’t enough to stop the shares taking a beating. HCL though, had an easier ride.
Continue reading »
Source: BSE India
India’s benchmark Sensex Index passed the psychological 20,000 mark for the first time in two years during the day’s trading on Tuesday. The index closed up 0.4 per cent at 19,986.82.
There has been much anticipation around the 20,000 landmark, as the index has rallied 23.7 per cent in the past twelve months. Continue reading »
Morgan Stanley has proposed an unlikely candidate to lead Indian equity markets to recovery – the country’s much-maligned public sector companies (PSUs).
Generally, investors are wary of government control and sectors such as utilities and electricity. But in a note to clients this week, analysts from the American bank set out three reasons why Indian PSUs may be set to rally. Continue reading »
The biggest Indian IPO in two years got off to a fizzle in its trading debut on Friday, with shares in Bharti Infratel down around 13.5 per cent at 190 rupees at time of writing. The offer price was 220 rupees. Continue reading »