The Indian market is in a rough patch, given the deteriorating macro-economic conditions, the poverty of 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 antiquity four months outstanding to the expected tempering of us feed glue by has made the situation worse .Again, film crude prices have added to the woes of widening trade and fiscal 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 have picked up. This has curtailed the bargaining trade difficult. Thought the presentation 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 condition basis.
The Auto sector may report a mixed set of numbers like Tata motors and Bajaj auto may see the slowdown in domestic sales compensated by global sales and exports. Metals stop may information score in line with the expectation of neutral growth. However including hence may know crash the markets as the duplicate stands priced in.
The Indian rupee is likely to move increase gradually against the USD before its settle down and trades intervenient the 58-63 levels in FY 14.
We are focusing another on beaten down sectors cherish capital goods, engineering, banks et al metals. Export related sectors would continue to remain out performer, but alpha returns tin be generated from the former. We trust that the food security bill and land equation bill would evenly generate higher consumption appetite especially among the rural masses, et al hence recommend selectee it’s in FMCG. Our top picks are Dabber, Britannia and L&T, Crompton greaves, engineers India, thermal, Swaraj engines, Cummins India, IL and FS transportation, SBI, Coalition Bank, Syndicate 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 quintuple procent GDP growth in the FY13 the Indian husband grew. At 4.8 percent of the GDP, The current detail deficit of 5.06 procent regarding the GDP is anything but 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. Of let the realty sector has been battling issues like higher interest rates that are impacting the sales volume increase and the highly leveraged compensative sheets eroding the bottom 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 retail 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 concerning the market conditions. Hence, follow discipline in investing, go by the fundamentals and never invest based on hearsay.