India’s GDP for Q2 FY12 grew at 6.9% (Bloomberg estimate: 6.8%). Core sector growth for the month of October dropped to a six year low of 0.1%. The core sector has expanded 7.2% last year (October 2010).
India’s food inflation for the week ended November 19 declined to 8%on a week-on-week basis from 9.01% for the week ended November 12 while fuel price index increased to 15.53% (15.49% last week).
Indian Prime Minister Manmohan Singh failed to break an impasse with opposition parties and his own allies demanding a rollback on FDI hike in retail sector. And as of today, this new policy has been put on hold to get agreement from opposing political parties. Continue reading Indian Economy and Capital Markets Review- 04Dec2011 →
Indian Stock Markets saw massive selling by nervous investors offloading delivery stocks, and trading stop loss triggers in the Futures and Options segment. Today’s total trading volume was a new life time high for Nifty. Nifty fell 3.3% on Huge Selling by FIIs, and though the DIIs tried to buy as much as they could, the number of sellers were 3 times more and the selling pressure was unstoppable till the end. Continue reading Indian Stock Market: Nifty falls 3.3% on Huge Selling by FIIs →
We know LIC is flush with insurance funds in March and LIC looks for good bargains for a long term period. On 11th March, LIC acquired 14% equity in Reliance Infrastructure. This should be seen as a big vote for the growth potential and attractive valuation of Reliance Infrastructure.
Reliance Infrastructure is a star performer of the ADA Group with a top quality management and strong projects pipeline in different sectors: Power Generation, Transmission, and Distribution, and Transporation (Metro Rails and Bridges) and Roads.
Our Advice: Reliance Infrastructure is one of the best quality stocks in India today, with very attractive valuation (under P/E 10 after removing its Reliance Power investment stake). Buy and Hold for 5 years for market best returns.
Continue reading LIC acquires 14% equity in Reliance Infrastructure →