BSE CAPITAL GOODS WHICH WAS ONE OF THE LAGGARDS TILL MAY 31, 2010 IS NOW A TOP PERFORMING SECTOR FROM JUNE 1, 2010 TILL JULY 15, 2010.
VIEWS ON INFRASTRUCTURE GROWTH ARE TURNING BULLISH WITH A SLEW OF REFORMS BEING ANNOUNCED BY GOVERNMENT OF INDIA. IN THE LAST 1 MONTH ON ABSOLUTE BASIS INFRA FUNDS RETURN IS SIMILAR OR CLOSE TO DIVERSIFIED FUNDS RETURN.
(1) AWARD OF ROAD PROJECTS
(2) LIBERALISATION OF BANK LENDING TO INFRASTRUCTURE COMPANIES
(3) REDUCTION IN FISCAL DEFICIT OF GOVERNMENT / FREEING UP RESOURCES TO BE SPENT ON DEVELOPMENT AGENDA (3G AUCTIONS, DEREGULATION OF OIL / REDUCTION IN SUBSIDIES)
(4) HUGE INFRA SPEND IN 12TH 5 YEAR PLAN (ESTIMATED AT RS. 27 TN) WILL OBVIOUSLY LEED TO ORDER FLOW FOR CONTRACTORS, ENGINEERING AND PROCUREMENT COMPANIES,
(5) CONSTRUCTION COMPANIES, CAPITAL GOODS, CEMENT ETC)
(6) HUGE POWER GENERATION CAPACITY TO BE ADDED IN NEXT 5 YEARS
(7) AT LEAST 15 AIRPORTS TO GET FACELIFT AND NEW PORTS TO BE COMMISSIONED
PERCEPTION OF INDIA IS FAST CHANGING IN INTERNATIONAL MARKETS: THIS IS PARTLY DUE TO
(1) NEW SYMBOL FOR RUPEE
(2) LAUNCH OF DELHI INTERNATIONAL AIRPORT T3, AMONGST THE LARGEST IN THE WORLD
(3) INDIAN MARKET PERFORMANCE THROUGH EUROPEAN TURMOIL, ONLY MARKET NOT TO FALL - PEOPLE HAVE LEARNT FROM OUR PERFORMANCE AFTER SUBPRIME CRISIS (BEST PERFORMING STOCK MARKET IN THE WORLD) SO THIS TIME THEY ARE NOT LIKELY TO MAKE MISTAKE OF SELLING OUT OF A MARKET THAT IS HARDLY IMPACTED BY GLOBAL TURMOIL.
Source of above mentioned information : ICICI Pru Asset Management Company, India
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