The Indian market is in a rough patch, given the deteriorating macro-economic conditions, the lack concerning policy implementation, and most importantly, the lack of confidence. To further aggravate the situation, the share decline in INR/USD by almost 20 percent in the nostalgic four months due to the expected tempering of us feed bond by has produced the seat worse .Again, photograph primitivity prices have added to the woes of widening trade and economic deficit.
However the silver lining is that with the decline in INR/USD coupled with the measures taken by the RBI and the government, gold imports have fallen and exports textiles and engineering. Goods endure picked up. This has curtailed the bargaining trade difficult. Thought the performance of the Indian market has been in line with that of most emerging markets in the past three months, it remains an out performer on a long term basis.
The Coupe sector may report a mixed set of numbers like Tata motors and Bajaj auto possible see the slowdown in homely sales compensated by global sales and exports. Metals stop may report result in line with the expectation of neuter growth. However and hence permitted know impact the markets as the same stands priced in.
The Indian rupee is likely to move jump gradually against the USD before its settle down and trades betwixt the 58-63 levels in FY 14.
We are focusing more on beaten down sectors like capital goods, engineering, banks and metals. Export related sectors would continue to remain out performer, but alpha returns can be generated from the former. We believe that the food security bill and land equation bill would evenly generate higher consumption voracity especially among the sylvan masses, and hence refer selectee it’s in FMCG. Our top picks are Dabber, Britannia and L&T, Crompton greaves, engineers India, thermal, Swaraj engines, Cummins India, IL ampersand FS transportation, SBI, Axis Bank, Pool Bank, PNB, Hindalco, Tata Steel, Vardhaman Textiles, Rallis India, Pidilite Industries, Blue Star, Esab India, Aditya Birla Nuvo, Madras Cements, Baja auto, Cairn India, LICHF and NMDC.
At quinquennial percent GDP growth in the FY13 the Indian economy grew. At 4.8 procent of the GDP, The current account deficit of 5.06 percent of the GDP is anything yet comforting. Besides, policy inconsistency and apathy towards the sentiments of the international as well as the domestic business communities have served to rub salt on the wounds. Like let the realty sector has been battling issues like higher interest rates that are impacting the sales volume growth and the highly leveraged balance sheets eroding the base lines. Naturally the sentiments are not good for this sector, which was once expected to be the driver of the India growth story.
We advice hawk investors to first set their objective in terms of realistic returns and according imbue in SIPs. For investors directly active in the market, there is always opportunity irrespective of the market conditions. Hence, consecutive discipline in investing, go by the fundamentals and never invest based on hearsay.