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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (4290)	5/19/1999 9:44:00 AM
From: Mohan Marette	Respond to of 12475

Kothari Pioneer's Sivasubramanian: Indian Stocks Comment Bloomberg News May 19, 1999, 2:48 a.m. PT Mumbai, May 19 (Bloomberg) -- K.N. Sivasubramanian, a fund manager at Kothari Pioneer AMC Ltd., one of India's best performing mutual funds with 4.5 billion rupees ($105 million) under management, speaks on India's stocks surge in May. The company's Bluechip Fund has gained 41.6 percent since Jan. 1, compared with a 32 percent rise in the benchmark index. India's Mumbai Sensitive Stock Index of 30 stocks on the Mumbai Stock Exchange surged 25 percent this month making it the tenth best performing stock indexes in the world since Jan. 1. Foreign investors pumped in more than $250 million so far this month, following a net $208 million investment in April. The surge is mainly because of inflows from foreign investors ''who've been following a strategy of investing in cyclical stocks across Asia which were beaten down to unrealistic levels,'' said Sivasubramaniam. ''There's some steam left; I don't expect market to (fall) from these levels. Oil refinery stocks still look cheap to me, telecom stocks look cheap.'' ''There are signs of the economy turning around but we have to wait some more'' to confirm that the recovery will continue, he said. ''Higher cement off-take,'' reflected in a 26 percent jump in cement sales in April, higher loan disbursements by Housing Development Finance Corp., India's biggest housing mortgage lender, and rising commercial vehicles sales all indicate a turnaround in the economy, he said. Kothari Pioneer ''is not buying anything at the moment because we're fully invested,'' he said. The mutual funds two new industry specific funds which raised a total 520 million rupees this year haven't been fully invested yet. The fund for investing in fast moving consumer goods raised 220 million rupees and the second fund for investing in drug companies raised 300 million rupees. Money managers, who had invested almost 30 to 40 percent of their total funds in the three best-performing industries so far, personal care products and processed food makers, pharmaceuticals and information technology, ''may slightly cut back on their exposures in these sectors. It'll be prudent for them to cut back.'' ''Still, these three sectors will continue to generate the highest returns on capital. Long term, we're very bullish on the information technology sector. It's going to grow 30 to 40 percent every year. Cyclical industries won't give you that kind of growth. Shares of commodity-based companies, such as cement, metals,oil, paper and chemicals are rising to their ''true levels because they were beaten down to unrealistic levels. Once the correction is over'' the information technology, drugs and consumer goods stocks will outpace the commodity makers. news.com

To: Mohan Marette who wrote (4290)	5/19/1999 10:49:00 AM
From: ratan lal	Read Replies (1) \| Respond to of 12475

Mohan - I think this info age is going to be the best thing going for a country like India with its millions of intelligent people who can (finally) operate without (much) govt. interference. Upto now the govt. has been the main hinderance in the path of entrepreuners. I hope the congress (and its crooked cronies ala laloo and jayalalitha) will become extinct like the dino with its 'phirangi' fiasco and give some others a chance to do good for the country. ratan