Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Champions of Growth
India Investor Conference Highlights
67 corporates, 250+ investors, and
several prominent keynote
speakers/panellists attended our
inaugural India Investor Conference
The general view was that while India’s
long-term prospects are bright, inflation
and politics are short-term headwinds
This report summarises the key findings
from the conference
HSBC’s inaugural India Investor Conference was a success,
with 67 corporates and more than 250 clients participating.
There were over 1,100 one-on-one and group meetings and
the conference also featured several high-profile keynote
speakers and a CIO panel discussion.
The keynote addresses were delivered by:
Dr. Subir Gokarn (Deputy Governor, Reserve Bank of
India)
Mr. Nandan Nilekani (Chairman, UIDAI and Cofounder,
Infosys)
Mr. Deepak Parekh (Chairman, HDFC)
Dr. Arun Shourie (Former Minister of Disinvestment,
Communications and Technology)
The most important macro messages are summarised below
(see inside for detailed company-related takeaways):
While India’s long-term growth prospects remain bright,
the short-term outlook is clouded by a) the risk of
persistent inflation (an element of which is structural),
and b) elevated uncertainty about politics. There is a
sense that the government is not progressing as
dynamically as India’s private sector.
Several bank executives are of the view that industry
will be able to absorb up to an additional 100 basis
points in interest rate increases without materially
impacting the appetite for loan growth.
Summary of keynote addresses and panel discussion
Besides meetings between corporates and
investors, HSBC’s inaugural India Investor
Conference also featured several keynote speakers
and a CIO panel discussion.
The CIO panel comprised:
Alexander Treves, Head of Investments,
Fidelity India
Sanjeev Duggal, CIO India, HSBC Global
Asset Management
Satish Ramanathan, Head of Equities,
Sundaram Mutual Fund
Vikram Kotak, CIO, Birla Sun Life Insurance
Monish Tahilramani, Deputy Head of Global
Markets and Head of Regional Training,
APAC, HSBC
The themes that emerged from the keynote
speeches and panel discussion were pretty clear –
while long-term prospects are good, political
uncertainty and the impact inflation could have on
corporate earnings are the most pressing shortterm
concerns.
Inflation: The current level of inflation (headline
and core) is outside the comfort zone and this
warrants further monetary policy action. That
said, our impression is that further policy rate
hikes are likely to be gradual because: a) rate
hikes alone may not be able to adequately contain
inflation, because several elements of inflation
(including part of food inflation) are structural;
and b) the RBI seems mindful of not wanting to
risk affecting growth momentum with a more
aggressive tightening stance.
Many speakers also believed that part of the food
inflation is structural (i.e. there are demand-supply
imbalances, particularly in higher protein foods, due
to improved standards of living). As such, very little
has been done to reform and develop the food
sector. Much still needs to be done on this front,
such as changing the AMPC (Agricultural
Marketing Policy Centre) rules, improving crop
yields, and modernising retail networks and storage
facilities. The general view was that these
imbalances will take 2-3 years to iron out.
Politics: While investor sentiment on the political
front has definitely dipped over the past few
months, there are still several potential headwinds
that could further dampen sentiment (i.e. new
corruption scandals and increased political rhetoric
owing to upcoming elections in several states).
ID cards: The roll-out of the Indian government’s
Unique Identity project (UID) will give people a
unique ID number and, importantly, also provide
low cost identity authentication. This is important
for the banking and telecom sector as a UID
number will be sufficient to open a bank account
or get a mobile phone subscription. It may also
serve as a framework to process the majority or all
of the USD20bn in social welfare payments made
every year.
The technology framework will be “open
architecture” and will therefore allow others to
build applications around the UID framework.
Most importantly, while this may create new
growth opportunities for several businesses, it
may also disrupt current practices for others.
Budget: While there was no specific view on the
budget (scheduled for end-February), our sense is
that it will be an important sentiment-shaping
event. It will clarify the government’s priorities
related to containing inflation, investing for
growth, funding social programmes, and
containing the budget and current account deficits.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Champions of Growth
India Investor Conference Highlights
67 corporates, 250+ investors, and
several prominent keynote
speakers/panellists attended our
inaugural India Investor Conference
The general view was that while India’s
long-term prospects are bright, inflation
and politics are short-term headwinds
This report summarises the key findings
from the conference
HSBC’s inaugural India Investor Conference was a success,
with 67 corporates and more than 250 clients participating.
There were over 1,100 one-on-one and group meetings and
the conference also featured several high-profile keynote
speakers and a CIO panel discussion.
The keynote addresses were delivered by:
Dr. Subir Gokarn (Deputy Governor, Reserve Bank of
India)
Mr. Nandan Nilekani (Chairman, UIDAI and Cofounder,
Infosys)
Mr. Deepak Parekh (Chairman, HDFC)
Dr. Arun Shourie (Former Minister of Disinvestment,
Communications and Technology)
The most important macro messages are summarised below
(see inside for detailed company-related takeaways):
While India’s long-term growth prospects remain bright,
the short-term outlook is clouded by a) the risk of
persistent inflation (an element of which is structural),
and b) elevated uncertainty about politics. There is a
sense that the government is not progressing as
dynamically as India’s private sector.
Several bank executives are of the view that industry
will be able to absorb up to an additional 100 basis
points in interest rate increases without materially
impacting the appetite for loan growth.
Summary of keynote addresses and panel discussion
Besides meetings between corporates and
investors, HSBC’s inaugural India Investor
Conference also featured several keynote speakers
and a CIO panel discussion.
The CIO panel comprised:
Alexander Treves, Head of Investments,
Fidelity India
Sanjeev Duggal, CIO India, HSBC Global
Asset Management
Satish Ramanathan, Head of Equities,
Sundaram Mutual Fund
Vikram Kotak, CIO, Birla Sun Life Insurance
Monish Tahilramani, Deputy Head of Global
Markets and Head of Regional Training,
APAC, HSBC
The themes that emerged from the keynote
speeches and panel discussion were pretty clear –
while long-term prospects are good, political
uncertainty and the impact inflation could have on
corporate earnings are the most pressing shortterm
concerns.
Inflation: The current level of inflation (headline
and core) is outside the comfort zone and this
warrants further monetary policy action. That
said, our impression is that further policy rate
hikes are likely to be gradual because: a) rate
hikes alone may not be able to adequately contain
inflation, because several elements of inflation
(including part of food inflation) are structural;
and b) the RBI seems mindful of not wanting to
risk affecting growth momentum with a more
aggressive tightening stance.
Many speakers also believed that part of the food
inflation is structural (i.e. there are demand-supply
imbalances, particularly in higher protein foods, due
to improved standards of living). As such, very little
has been done to reform and develop the food
sector. Much still needs to be done on this front,
such as changing the AMPC (Agricultural
Marketing Policy Centre) rules, improving crop
yields, and modernising retail networks and storage
facilities. The general view was that these
imbalances will take 2-3 years to iron out.
Politics: While investor sentiment on the political
front has definitely dipped over the past few
months, there are still several potential headwinds
that could further dampen sentiment (i.e. new
corruption scandals and increased political rhetoric
owing to upcoming elections in several states).
ID cards: The roll-out of the Indian government’s
Unique Identity project (UID) will give people a
unique ID number and, importantly, also provide
low cost identity authentication. This is important
for the banking and telecom sector as a UID
number will be sufficient to open a bank account
or get a mobile phone subscription. It may also
serve as a framework to process the majority or all
of the USD20bn in social welfare payments made
every year.
The technology framework will be “open
architecture” and will therefore allow others to
build applications around the UID framework.
Most importantly, while this may create new
growth opportunities for several businesses, it
may also disrupt current practices for others.
Budget: While there was no specific view on the
budget (scheduled for end-February), our sense is
that it will be an important sentiment-shaping
event. It will clarify the government’s priorities
related to containing inflation, investing for
growth, funding social programmes, and
containing the budget and current account deficits.
No comments:
Post a Comment