Tuesday, January 17, 2012
Saturday, January 7, 2012
INDIAN EQUITIES -DEBT WORRIES SURFACE AS THE ECONOMY SLOWS
As the Indian Economy slows, a number of Indian Corporates may find that they over-stretched themselves while the going was good, and are now saddled with heavy debts to repay.
It's not that borrowing for business expansion is a bad thing in itself, it's just that some over-leveraged Corporates will struggle with debt servicing in 2012.
Some sectors that come to mind are the Airlines, Oil services, Ship- building and infrastructure.
Investors must keep in mind that although many stocks in these sectors trade at record low valuations, the Risk -Reward ratio may still not favour investors at this stage.
Remember some stocks have been beaten down for well deserved reasons, and investors must analyse their own risk return profiles before jumping in now.
In my view, many companies will need some debt restructuring before they can trurn things around.
This could mean that the banking sector too could take a while to recover, at least until interest rate cuts expected in the near future ease the liquidity concern of some cash strapped corporates.
Invest wisely!
It's not that borrowing for business expansion is a bad thing in itself, it's just that some over-leveraged Corporates will struggle with debt servicing in 2012.
Some sectors that come to mind are the Airlines, Oil services, Ship- building and infrastructure.
Remember some stocks have been beaten down for well deserved reasons, and investors must analyse their own risk return profiles before jumping in now.
In my view, many companies will need some debt restructuring before they can trurn things around.
This could mean that the banking sector too could take a while to recover, at least until interest rate cuts expected in the near future ease the liquidity concern of some cash strapped corporates.
Invest wisely!
Indian Equities - Looking Back at 2011 - PART 2
Here are a couple more articles to round up our look back at 2011!
Monday, January 2, 2012
INDIAN EQUITIES - LOOKING BACK AT 2011
Here are some articles from last year that I think are worth a read.
Indian Equities have been faced with a toxic combination of Policy inaction, high interest rates, a very weak Indian Rupee and waves of instability from western markets, primarily the EU.
The articles below provide some interesting views on the Outlook for 2011. Mukul Pal's contrarian outlook, highlights the point that beaten down sectors that have been written off by Mr. Market could surprise us in 2012!
The articles below provide some interesting views on the Outlook for 2011. Mukul Pal's contrarian outlook, highlights the point that beaten down sectors that have been written off by Mr. Market could surprise us in 2012!
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