India Strategy

was having a look at India Strategy reports from the past:

one common indicator is that everybody has been UNDERWEIGHT on Cement.

Oct-Nov 09

Morgan Stanley

- Equity funds experienced 3rd month consecutive net redemptions of Rs 2,200 crores

- Fixed income saw 2nd largest monthly inflows ever Rs 1.4 trillion

- Oct end MF Equity AUM $40billion = Rs 2lac crores (25% of total MF AUM)

- per second billing & high competition eating profits of Telecom players

- Indian cos likely to continue with RoE superiority ~18%

- RoE bottom behind us

HSBC

- upgrade EPS estimates, underweight Healthcare

- RBI could tighten monetary policy-our economists

- Indian markets may lag Asia

Citigroup

- Foreign stake up by 1% to 17% Q-o-Q, but below 20% peak

- FII holdings at $200 billion is 50% of free-float m-cap

BoA Merrill Lynch

- markets will rally in December after a slow October

- expect markets to SELL on earnings good news

- cash with DMFs at 18month low

- nxt 6 months supply of new paper will suck out liquidity

- Inflation could be a worry

- Overweight Banks, Pharma, Capital goods

- Underweight Hindalco, Ambuja, Infosys

BNP Paribas

- Overweight infra, banks, utilities.

- Underweight Cement & Telecom

- Buy M&M, Axis Bank, IRB Infra. SELL ABB, Wipro, RCom

- expect RBI to continue with easy money policy

UBS

- correction = buying opportunity

- Overweight Auto, Telecom & Pharma

Edelweiss

- Current rally has been too far too soon

- Large supply of paper to temper markets/ liquidity

- Mid cap values. Bottom-up stock selection

- Overweight BFSI, Metals, RE, Healthcare

- Underweight IT, Cement