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Grow...but how?
This year we will see big business using the courts and Parliament to consolidate and grow. This is a logical fallout of high growth, that has made India the world’s fastest-growing economy after China. While this growth attracts global capital, incumbents have an interest in maintaining status quo, in extracting rents, in holding reforms...Ten numbers that will matter
This year we will see big business using the courts and Parliament to consolidate and grow. This is a logical fallout of high growth, that has made India the world’s fastest-growing economy after China. While this growth attracts global capital, incumbents have an interest in maintaining status quo, in extracting rents, in holding reforms.
They will do so in two big areas. One, land acquisition — we need to create a market-led but humane legal infrastructure. And two, increased foreign investment in select sectors such as insurance.
While these will hog the headlines in 2010, a lot more will happen in the market, as mergers and acquisitions help businesses attain size and scale. Enterprise, innovation and doing business the simple way (hard work backing creative ideas in new markets bound together with technology and finance) will take over, making India one of the most exciting places to do business.
Five stocks to track
Occupational rise
The company saw negative growth in its revenues and profits in 2008-09. While the Commonwealth Games is expected to bring tourists to India, a revival in the global economy will lead to a rise in business travels and a rise in the occupancy rates and higher pricing power for the hotels.
Mushrooming ahead
Infrastructure and power will be the leading theme for growth over the next five to 10 years. L&T, with its strong engineering and infrastructure development ability and its entry into the nuclear space will give it an edge. Its revenues and profits grow by 35 per cent and 60 per cent, respectively in 2008-09.
Fuelling growth
As the company recently struck a new gas discovery in its D3 block, the gains are expected to be big for the company, if the discovery turns out to be a significant one. Also the merged entity (Reliance Petroleum merged) will add to the company’s revenue and profits in a significant manner.
Steely march
Tata Steel will double its capacity by around 2012, which will significantly boost its revenue and profitability. This will cater to the rising steel demand from the infrastructure development. Any rise in steel prices will add to its topline. The company saw its share price jump 185 per cent in 2009.
Consolidation path
There is a possibility of Mahindra Satyam getting merged into Tech Mahindra that will make Tech Mahindra the fourth largest IT company in the country and will bring in synergy benefits. The IT sector is expected to do well as the developed economies are on a revival path.
Six faces you will see
Challenges ahead
Pranab Mukherjee faces the challenge of bringing down prices, sustaining growth and keeping fiscal deficit in limits.
Verdict this year
The court battle between the Ambani brothers is likely to come to an end with a verdict shortly.
A successor soon
The hunt for Ratan Tata’s successor is on. Carlos Ghosn, Indra Nooyi and Arun Sarin are reportedly in the fray.
Tough task
Having managed the task of infusing liquidity well, D. Subbarao has to raise interest rates without derailing growth.
To be a N-hero
L&T’s A.M. Naik’s next big bet is to become a nuclear superhero and 2010 will mark the first chapter.
Five gadgets you will buy
Kindle is here
Amazon’s amazing Kindle has been around in US for sometime. But it is only now with its global launch in October 2009 that it has started to account for something. It is a software and hardware platform developed by Amazon.com that displays e-books and other digital media using electronic paper display downloading content over Amazon Whispernet. Kindle can be used without a computer and the most popular version Kindle 2 that costs Rs 12,173 ($259) has 16 level display, that can store about 1,500 non illustrated books.
MapmyIndia to guide you now
Consulting navigation tools as a way of life is still pretty much alien in India but it surely is a matter of time. MapmyIndia Sygic Maps bring in even more technology into this field, this time for a change in order to do away with some other technology. These maps are stored in the mobile phone and do not require a GPRS or data connection to get them working. With street level directions of over 400 cities in India, getting lost is no longer an easy task.
Android: the next big thing
Android could revolutionise the industry even further. It is a mobile operating system running on Linux Kernel and competes with the likes of Symbian, Microsoft Mobile and Blackberry. It is an open source software, it is cheaper and faster. Android’s best feature is the high level of customisation that it offers to the network carrier and consumer.
Sony Playstation is slimmer
In the world of gaming, Playstation is an icon and till the time a certain Microsoft brought on Xbox 360, playstation was all one cared for. So everytime a new device from Sony bursts on to the scene, one has to sit up and take note. The 120 GB Slim PS3 promises to be an improved variant of the popular PS3 both in terms of features and functionality. It is at the same time much more sleeker and compact to look at.
Nikon P90 stands out
It has become a bid crowded in the superzoom category in cameras but the P90 manages to stands out of the crowd and not like a sore thumb. With a high 24x optical zoom focal range, this 12.1 mega pixel vari angle LCD camera will suffice in whatever conditions it will be used.
Five issues that will burn
Return of renewable energy
From coconut shells and cashew kernels to ice creams, ketchups, tea and soaps; from municipal solid waste to alternate energy. Clean development mechanism (CDM) is likely to spawn the development of the Indian carbon market with a diverse portfolio of projects. Efforts are underway to produce oil from coal as India Inc warms up to the challenge of containing global warming.
Number portability soon
The seemingly endless wait for mobile number portability (MNP) might end this year. The deadline for MNP, which allows consumers to change their mobile operator without having to give up their phone number, has been extended several times in the past with most operators stating they were not prepared to the offer the service. But 2010 seems a likely year for the ushering in the service.
FIIs to gain momentum
Most merging economies have picked up momentum in employment and domestic consumption, rendering the much-needed sustainability to the ongoing recovery. Flows into emerging markets likely to remain strong through 2010, but growth in these economies could be differentiated and spotty — depending on existing and emerging fundamentals of individual economies. In India, a majority of the incremental investment goes into domestic-oriented sectors and companies, in contrast to that of China, where it is mostly concentrated in the exports industry. India could become a standalone asset-class rather than being a part of emerging portfolios of foreign institutional investors that invested Rs 83,400 crore in Indian markets in 2009.
Zooming divestment proceeds
The finance ministry is giving final touches to a comprehensive calendar detailing the timeline of divesting government-equity in public sectors, beginning April 2010. If all goes to plan, disinvestment proceeds could even overtake in one year what it had garnered in the last 18 years. For the record, the government has raked in Rs 53, 253 crore by selling equity in its companies since 1991.
Strict corporate governance
Stung by the alleged accounting manipulations in Satyam Computer Services, worried regulatory authorities in the country are readying a stringent set of rules and norms that would arm even small investors to fight for their rights. New auditing standards and focus on “integrity and independence” of independent directors are the likely new buzzwords.
Five mutual funds to watch
Consistent on top
It has been the top performer in the past one year and over the past five years. Since its launch in 2004, it has generated a compounded annual growth rate of 29 per cent.
Riding growth sectors
It has been in the top ten performers both in the one year and three year tenure. It has exposure to metals, FMCG and financial sectors that are expected to do well.
Engineering returns
Top performing large sized fund with total assets under management of Rs 1,001 crore. Since its launch in 2002, the scheme has managed to generate a CAGR of 38 per cent.
Size with pace
A large sized fund with assets under management of over Rs 1,700 crore. A top performer since its launch in 2005. It has high weightage of over 19 per cent in the energy sector.
Mid-cap mover
One of the first schemes to have taken exposure to mid caps and has generated high return. It has outperformed its benchmark BSE 500 by over 10 percentage points.
