Tag Archives: India

Market opportunities by T-Advisor: Infosys

T-Advisor, through its tool Market Opportunities, has detected the company Infosys Technologies, listed in Bombay Stock Exchange as an opportunity for investment.

These are the main figures about performances and volatility in the last years:

Infosys main figures in T-AdvisorThe chart shows the evolution in the last year:

Infosys chart in T-AdvisorThe technical analysis reveals also more data:

Infosys technical analysis in T-Advisor Finally, the risk analysis is as follows:

Infosys risk analysis in T-Advisor

Infosys is a global company in consulting, technology, and outsourcing and next-generation services. It has near 200,000 employees and representative offices in 85 countries. Fiscal year 2014-2015 closed with a revenues up to US$ 8.7 billion, a 5.6% more than the fiscal year before. Net income also increased 15%, up to US$ 2.01 billion. Since May, 2013, the share has grown a 65%.

India: the promising emerging country

Many eyes are on India, after Narendra Modi was elected as new Prime Minister last year. His reformist agenda interested the investors’ community, as India is still a country with several barriers for an open market. However, only the effect of expectations about Modi’s reforms pushed the stock market, as BlackRock’s Investment Chief Russ Koesterich commented.

It is expected that the GDP in the fiscal year 2014/2015 (till March) has grown around 7.4%. However, there is a current slowdown related to the traditional country structure. Reforms are not easy in such a big country with strong social structures. But Modi has generated optimism to make business easier and attract foreign investment. He also plan strong investments in infrastructures to promote the economy. Oil prices have helped control the prices, traditionally rampant, and the Reserve Bank of India reduced in March the interest rate to 7.5%, with possible new cuts if fiscal policies are under control.

What about the stock exchange? Sensex Index in Bombay shows that there is currently a correction after the peaks in the first quarter of 2015. The former year registered a steady line upwards favoured by Modi’s reformist programme.

Global trend in India by T-Advisor

What are the winners and losers in Bombay Stock Exchange? Top performers are related to car industry (Bharat Forge and Ashok Leyland), pharma (Ranbaxy Labs and Lupin) and chemicals (United Phosphorus). These are the figures in T-Advisor:

Best performers in Bombay Stock Exchange

On the other hand, worst performers are related to infrastructure (Jaiprakash and GMR), tourism (Indian Hotels), education (Educomp Solutions) and industry (Jindal Steel and Power). These are the figures in T-Advisor:

Worst performers in Bombay Stock Exchange

India has still several handicaps, but with a Chinese economy suffering a slowdown, many investors pay attention to the Indian economy, as they perceive this country as the promising emerging amongst the famous BRICS group.

Market opportunities by T-Advisor: Adani Ports

T-Advisor, through its tool Market Opportunities, has detected the company Adani Ports, listed in Bombay Stock Exchange, as an opportunity for investment.

These are the main figures about performances and volatility in the last years:

Adani Ports main data in T-Advisor

The chart shows the evolution in the last year:

Adani Ports chart in T-Advisor

The technical analysis reveals also more data:

Adani Ports technical analysis in T-Advisor

Finally, the risk analysis is as follows:

Adani Ports risk analysis in T-Advisor

Adani Ports is part of India’s leading infrastructure conglomerate Adani Group. Adani Ports is the only private sector port operator with presence across six ports in India. The company’s aim is to increase annual cargo handling capacity from 112.8 million MT in 2014 to 200 million MT by 2020.

Total income in FY2014 (ended 31th March 2014) increased 41%, till 50.2 billion rupees ($728.3 million). Net profil also grew 15%, till 20.1 billion rupees ($292.1 million). Share price has jumped 135.9% since January 2014.

Emerging markets: risk with chances in 2014

Emerging markets Puzzle with Brazil, Russia, India and China flags by T-Advisor

Emerging markets compound an increasing number of countries in the last years. In the beginning, Goldman Sachs pointed them as BRIC (initials of Brazil, Russia, India and China). This successful combination enlarged joining to this group another countries: Indonesia, Korea, Taiwan, South Africa and Turkey. In the markets, they are divided between the “fragile five” (Brazil, India, Indonesia, South Africa and Turkey) and the “fab four” (China, Taiwan, Korea and Russia). The reason to build this both groups is linked to the current account position: deficit for the first ones, surplus for the second ones.

This point is quite important in the current financial situation and conditions investors’ decisions. The “fragile five” will suffer from the tapering begun by the Fed in December. The costs to finance their deficits will increase as the dollar will be more expensive and the US debt will require higher yields. Moreover, these countries will deal with elections in 2014. On the contrary, the tapering decision did not affect the fab four, which represent 50% of the MSCI Emerging Markets index.

What is the best in emerging markets? Just run away? Take the money and say goodbye? Schroders disagree with a pessimistic position about them. As this bank underlines, these countries have solid economic fundamentals and attractive valuations. However, tapering will create uncertainty in some countries, as it was mentioned above. Avoid an exposure to tapering-affected countries and overweight the other group is the point for the British bank.

Russia appears as a specially cheap country for investors, as Alken Asset Management recently stated. The situation is similar in India: low prices open great chances, but it depends on the election results, the economic expansion and the effect of the Fed tapering. In the case of China, the view is driven to sectors that did not outperform in 2013. Possibly, Brazil will suffer at most, as the widening current account deficit will affect the economic outlook, despite the positive impact of the Football World Cup in investment.

Invest in emerging markets is a risky game, but with productive incomes and profits if the right keys are played. In this case, macroeconomics will have a very important role in investors’ decisions.