Sunday, February 14, 2010

Market: Funds chant caution mantra

MUMBAI: Fund managers seem to be in no hurry to load up on shares, notwithstanding the 10% correction in stock prices over the last couple of
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weeks. While awaiting the upcoming Budget proposals before firming up their near-term investment strategies, most money managers expect the market to consolidate for the next six months at least.

Fair valuations, a long line-up of share issuances, an upward trend in interest rates and nervous world markets could neutralise positives like a steadily growing domestic economy and reasonably good fund flows from overseas players. At the same time, investors will be keenly eyeing corporate earnings while assigning an earnings multiples to the market.

“Fundamentals rather than (capital) flows will drive the market over the next six months; we are in for a phase of consolidation,” says Nilesh Shah, deputy managing director and chief investment officer, ICICI Prudential AMC, adding, “the market is fairly valued at 14.5-15 times forward (FY11) earnings.” BSE’s 30-share Sensex shed 120 points to close at 15,922 on Wednesday, and NSE’s 50-share Nifty fell 35 points to close at 4757.20.

Create new avenues of growth, development: Shashi Tharoor

Create new avenues of growth, development: Shashi Tharoor

Thiruvananthapuram, Feb 13: Asia should take into account the changing world economic scenario and leverage its comparative advantage to create new avenues of growth and development, Minister of State for External Affairs Shashi Tharoor said on Saturday. “Our endeavour should be to leverage our comparative advantage to build alliances, develop partnerships, create new avenues of growth and development and strengthen the existing ones,” said Tharoor while inaugurating the Asian Development Dialogue (ADD) on Asian Trade: The Way Forward. “We need to enhance our mutual investments, joint ventures and project participation,” he said. The conference debated on the present status of Asian trade and the road ahead for Asian countries in the trade and commerce scenario.