International and Emerging Markets Blog
Thursday, July 15, 2010 | Posted by: Grant Summers
Categories:
| Tags: India,
Grant Thornton,
India Watch,
LSE,
South Asia Group,
Fiona Owen,
Capital Markets,
London Stock Exchange
Grant Thornton’s latest India Watch Index reveals that, over the last quarter, there has been a drop in the share prices of India-focused oil and gas companies listed on the London Stock Exchange (LSE). This was, however, not unexpected given the knock on effect of BP’s exploration disaster in the Gulf of Mexico. Nevertheless, it has in-turn set back the India Watch Index, which was further impacted by other environmental concerns in connection with the mining sector. As a result of the above, a number of investors in the natural resources sector are now beginning to anticipate that India may introduce tougher regulatory rules for oil exploration, deepwater drilling and mining.
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Thursday, July 15, 2010 | Posted by: Grant Summers
Categories:
| Tags: India,
investment,
finance,
Grant Thornton,
global,
South Asia Group,
South Asia,
economic,
Alex Wright,
Indian Economy
Now that we are more than half way through 2010, we are in a position to take stock of the first 6 months of the year and look ahead to what the second half of this year may hold for the Indian economy.
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Thursday, July 15, 2010 | Posted by: Grant Thornton
Categories:
| Tags: India,
M&A,
Grant Thornton India,
South Asia Group,
deals,
Indian Economy,
Cross border,
Deal Tracker,
Mergers and acquisition
As highlighted in our economic update, India’s economy continues to grow at a remarkable rate. While there continues to be fiscal matters which the Government will need to address in the short to medium term, business activity is very much on the rise.
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Thursday, July 15, 2010 | Posted by: Koushik Vasudevan
Categories:
| Tags: business,
India,
investment,
economy,
global,
Elara Capital
Indian markets are among the few around the globe which enjoy ‘growth’ and ‘defensive’ premiums at the same time. At a consensus EPS of INR1050 for the Sensex, we are trading at the higher end of P/E (17x), which is more than the historical one year forward of around 15.5x. In the long term, favorable demographics and an infrastructure-driven Indian economy offers good long-term investment opportunities which should ideally push this multiple even higher. Given the current global scene, we would ideally like to be positioned in the domestically driven themes. With a strong volume growth, supple input costs and positive operating leverage acting as a cushion to margins, Auto companies seem impressive for the rest of the year. Infrastructure stocks are slated to report a stable performance in the coming quarters, supported by the growth momentum in H2FY11 and a pickup in execution across segments. We would bet on emerging diversified infra themes, especially a play on energy and roads over the next 15-18 months.
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Thursday, July 15, 2010 | Posted by: Grant Thornton
Categories:
| Tags: India,
investment,
Grant Thornton,
M&A,
South Asia Group,
deals,
South Asia,
mergers,
acquisitions,
Sanjeev Gandhi
Predictably 2009 saw a significant drop in M&A activity in India. As sentiment picks up with the global economic recovery, we are seeing definite signs that India Inc. is once again ready for a sustained cross-border deal-making trend.
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