advice for the wise march 2013
TRANSCRIPT
1
ADVICE for the WISE
Newsletter – MARCH 2013
Economic Update 4
Equity Outlook 8
Debt Outlook 12
Forex 14
Commodities 15
Index Page No.
Contents
Real Estate 16
2
From the Desk of the CIO…
“Advisory services are provided through Karvy Stock Broking Ltd. (PMS) having SEBI Registration No: INP000001512. Investments are subject to market risks. Please read the disclaimer on slide 18”
Dear Investors,
The Union Budget 2014 presented in the Parliament on 28th
February provoked different reactions from investors, common
man and industry. While it disappointed investors – who were
hoping for a path-breaking slew of reforms – it remained
prudent in its outlays and fiscal deficit targets. Debt and equity
markets alike reacted with negative movement on the day of the
budget. Part of the reaction was driven by confusion in the fine
print related to the tax treaties. As the air cleared over that,
equity markets recovered to pre-budget levels. On the balance
though, the effect of budget is unlikely to last beyond few days.
Participants in both debt and equity markets are now starting to
speculate about RBI’s move in the monetary policy
announcement due this month. There are those that believe the
fiscal prudence that marked the budget is likely to give RBI
enough comfort to embark on aggressive monetary policy
easing. Others maintain that the fiscal deficit numbers for FY14
are hard to achieve and RBI knows it just as well, thus keeping
the earlier trade off of growth and inflation almost unchanged,
and monetary policy easing slow. We belong to the former camp
and believe that RBI will cut rates quickly if not very aggressively,
in the next few months.
Equities markets saw renewed turbulence in the run up to and
after the budget. While broad markets experienced some
amount of volatility, mid-caps faired much worse. Several good
quality mid-cap stocks saw a major correction. Some of these
have become very attractively priced as a result. We believe the
upside to risk ratio of these stocks at the prevailing prices is
highly attractive.
Global risk appetite saw some caution creep in through
February. The Italian election results made investors revisit their
scenarios of fresh trouble in Eurozone. The hung parliament and
the possibility of anti-austerity parties having a significant say in
the ruling coalition has investors starting to worry about the
future of Euro again. The final word of Italian government is yet
to come. However, macroeconomic data from US has cheered
investors back into a sense of business as usual. The pending
negotiations in US over the sequestration may bring jitters back.
However, most investors have grown habituated to the political
brinkmanship in US and Eurozone alike and have increasingly
started to express an almost dangerous faith in things finally
working themselves out.
On the equities front, the tail (improbable but highly damaging)
event risks remain quite real at current valuations. Either a
suitably structured exposure to equities with downside
protection or the ability to ignore the short term noise because
of the turbulence is a good defense against these risks. Taking
exposure to USD through currency futures, investing in dollar-
denominated assets or taking explicit put option cover are some
of the specific guards against the improbable event risks.
3
As on 28th Feb 2013
Change over last month
Change over last year
Equity Markets
BSE Sensex 18862 (5.2%) 6.2%
S&P Nifty 5693 (5.7%) 5.7%
S&P 500 1515 1.1% 10.9%
Nikkei 225 11559 3.8% 18.9%
Debt Markets
10-yr G-Sec Yield 7.87% 1 Bps (34 bps)
Call Markets 7.89% (15 bps) (109 bps)
Fixed Deposit* 8.75% 25 Bps (50 bps)
Commodity Markets
RICI Index 3692 (4.0%) (5.7%)
Gold (`/10gm) 29517 (2.2%) 3.2%%
Crude Oil ($/bbl) As on 25th Feb 2013
114.5 (0.9%) (6.3%)
Forex
Markets
Rupee/Dollar 53.8 (0.9%) (9.0%)
Yen/Dollar 91.8 (0.9%) (12.4%)
Economic Update - Snapshot of Key Markets
10 yr Gsec
Gold
• Indicates SBI one-year FD •New 10 Year benchmark paper(8.15%, 2022 Maturity) was listed in the month of June, the 1 year yield is compared to the earlier benchmark(2021 Maturity)
4
80
85
90
95
100
105
110
115
120
125 Sensex Nifty S&P 500 Nikkei 225
45
47
49
51
53
55
57
59 `/$
25000
26000
27000
28000
29000
30000
31000
32000
33000
7.20
7.70
8.20
8.70
9.20
Economy Update - Global
US
Europe
Japan
Emerging economies
• The Conference Board Consumer Confidence Index, which had declined in January, rebounded in
February. The Index now stands at 69.6 (1985=100), up from 58.4 in January
• Gross Domestic Product was revised at an annual rate of 0.1%in the Q4 CY 12 as compared to the 0.1%
drop that was originally reported. However, the growth is much lower than last quarter’s annual rate of
3.1%.
• The seasonally adjusted Markit Eurozone Manufacturing PMI remain unchanged in February 2013 at
47.9. The PMI held steady in February, but some consolation can be gained from the fact that January’s
reading was the highest for 11 months, suggesting that the manufacturing downturn has eased so far this
year compared to the pace of decline seen throughout much of last year.
• Euro-zone unemployment rate rose to a record to 11.9% in January 2013 from an upwardly revised 11.8%
in December 2012.
• Japan’s Manufacturing PMI posted a reading of 48.5 in February 2013, up from 47.7 in January 2013.
However, by remaining below the 50.0 mark for an ninth successive month, the PMI again pointed to a
deterioration in manufacturing operating conditions.
• The seasonally adjusted unemployment rate came at 4.2% in January 2013, down from upwardly revised
4.3% in December 2012.
• China’s HSBC PMI posted a reading of 50.4 in February 2013 down from 52.3 in January 2013, signalling a
marginal strengthening of operating conditions in the Chinese manufacturing sector.
• India’s HSBC Purchasing Managers’ Index(PMI) posted 54.2 in February 2013, up from the reading of 53.2
in January 2013 signaling a further improvement in the health of the manufacturing sector.
• India’s GDP growth for the quarter ending December 2012, slipped to 4.5%. The Indian economy had
grown by 5.5% and 5.3% in first and second quarter of FY 12 respectively. 5
Economy Outlook - Domestic
• The country's gross domestic product (GDP) grew at a 10-year
low of 4.5% during the third quarter of the current financial
year, hurt by a slowdown in agriculture, mining and
manufacturing, pushing the projected annual growth rate down
further. The gross domestic product (GDP) had expanded by 6%
in the same period of last fiscal.
• The economic growth in the first nine months of this fiscal
(April-December) stood at 5%. The manufacturing sector grew
an annual 2.5% during the quarter while farm output rose just
1.1% & mining fell by 1.4%.
• The Industrial sector slightly rebounded to 3.3% during the
quarter from 2.7% y-o-y in the June quarter and 2.6% in the
corresponding quarter of the previous year. India’s GDP growth
pegged at 6.1%-6.7% for FY14; FY13 growth seen 5.0%. India's
key eight core sector growth expands 3.9% in January following
2.5% growth in December.
GDP growth
• India's industrial production unexpectedly shrank for a second
straight month in December, weighed down by weak investment
and consumer demand. The index of industrial production (IIP) fell
0.6% annually in December 2012. IIP for November has also been
revised downwards to negative 0.8% from 0.1% .
• Cumulative growth in FY13 in Apr- Dec 2012 stands at 0.7% as
against a growth of 3.7% in corresponding period of the previous
year. Mining registered -1.9% growth in April Dec 2012, as against -
2.6% during the same period last year. Manufacturing registered
near zero growth of 0.7% in April - Dec 2012, when compared with
4.0% in April - Dec 2011.
• The IIP number for December is at variance with the Purchasing
Managers’ Index (PMI) for manufacturing, which had risen to a five-
month high in December 2012. Perhaps this divergence can be
explained by the fact that while PMI survey data is from large
companies, the IIP numbers include smaller firms.
IIP
6
7.8 7.7
6.9
6.1
5.3 5.5
5.3
4.5
4.0
4.5
5.0
5.5
6.0
6.5
7.0
7.5
8.0
FY11(Q4) FY12(Q1) FY12(Q2) FY12(Q3) FY12(Q4) FY13(Q1) FY13(Q2) FY13(Q3)
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
Dec 11
Jan 12
Feb 12
Mar 12
Apr 12
May 12
Jun 12
Jul 12 Aug 12
Sep 12
Oct 12
Nov 12
Dec 12
Economic Outlook - Domestic
As on Jan 2013 Bank credits grew by 16.1% on a Y-o-Y basis
which is about 0.9% higher than the growth witnessed in
December 2012. Aggregate deposits on a Y-o-Y basis grew at
13.2%, viz-a viz a growth of 11.1% in December 2012.
On 29th January 2013, Reserve Bank of India cut the repo rate-
the key policy rate by 25 basis points to 7.75% in its 3rd Quarter
review. Cash reserve ratio (CRR) was also reduced by 25 basis
points to 4%.
If correcting macroeconomic imbalances is good for growth, then
fiscal discipline has at last begun to move in that direction. The
estimated fiscal deficit for 2012-13 was a tad lower than
targeted at 5.2% of GDP, and is forecast to shrink to 4.8% of GDP
in 2013-14. Meaningful fiscal influence upon the economy will
come from abating the threat of a ratings downgrade, lesser
demand boost and, hence, more room for monetary policy, all of
which should support growth.
India’s headline inflation declined sharply to 6.62% in January
from 7.18% in December, its slowest pace in three years. It is
the fourth consecutive monthly decline. WPI declined as the
prices of fuel and manufactured items cooled moderately in
December, compared to those in the previous month.
Manufacturing goods inflation declined to 4.81% from 5.04%
while fuel prices rose 7.06% in January from those a year
earlier, compared with an annual rise of 9.38% in December.
Food inflation, as a category, rose to 8.5% during the month,
from 8.32% a year ago. Food articles have 14.3% share in the
WPI basket. For the fuel and power category, inflation
moderated to 10.02% during the month from 15.48% in
November 2011. However, diesel inflation increased by 14.60%
last month.
Consumer price inflation climbed to 10.79% in January, while
factory output for December shrank 0.6%, all indicating that the
ongoing slowdown could get worse.
Growth in credit & deposits of SCBs
* End of period figures 7
6.0% 6.2% 6.4% 6.6% 6.8% 7.0% 7.2% 7.4% 7.6% 7.8% 8.0% Wholesale Price Index
5.0%
7.0%
9.0%
11.0%
13.0%
15.0%
17.0%
19.0%
21.0%
Bank Credit Aggregate Deposits
Equity Outlook
Union Budget for FY14 turned out to be on expected lines with focus on fiscal consolidation. Finance Minister met his promise of
keeping fiscal deficit at 5.2% for FY13. The provisions for fuel and fertilizer subsidies look adequate this year and the fiscal deficit
number would be closer to 5% for FY14 if price hikes continue for auto fuels. The allowances for various entitlement programmes have
not been increased very meaningfully. Current account seems to be a bigger concern for the economy. We expect several measures to
boost export in the new Exim policy expected by month end. Direct Taxes Code (DTC) bill and Insurance bill are going to be introduced in
current Parliament session which will take the reform process forward. We expect RBI to take cognizance of these fiscal consolidation
measures and continue with monetary easing in its next review on 19th March. The correction in the markets in last three weeks has
opened up an attractive entry opportunity and we recommend investors to increase their exposure to equity.
Key Highlights of Budget
The fiscal deficit number has been penciled at 4.8% for FY14. The provisions for fuel and fertilizer subsidies look much better this year
and the fiscal deficit number would be closer to 5% if price hikes continue for auto fuels.
Direct Taxes Code (DTC) bill to be introduced in current Parliament session. No timelines have been given for implementation Goods and
services tax (GST).
On Revenue side, no change has been made in slabs and rate for personal income tax. Surcharge for domestic companies whose taxable
income exceeds Rs 10 crore per year is increased from 5% to 10%. In the case of foreign companies, the surcharge will increase from 2%
to 5%.The additional surcharges will be in force for only one year, that is for Financial Year 2013-14. One time voluntary compliance
scheme for service tax defaulters to be introduced. And interest and penalties will be waived
8
Budget for FY14 came in on expected lines
Key Highlights
• On the expenditure side, government has provided for Food subsidy of Rs.90,000 crs and is looking to implement Food
security bill. The allowances for various other entitlement programmes have not been increased very meaningfully.
• There was a lot of talk on boosting infrastructure & investment activity but no concrete provisions have come in. Marginal
changes on investment allowance are unlikely to spur SME’s to start investing
• Subsidies related to administering the Food Security Act have not been separately mentioned. An additional 10,000 crores
has been earmarked in addition to the regular food subsidies of 80,000 crores.
• GDP growth for FY14 is estimated at 6.1-6.7%. All tax estimates have been made keeping the mid point of this range as
benchmark
• In FY13, as against a target of Rs. 30,000 crs, the Government will raise about Rs25,000 crs from disinvestment. For FY14,
Rs. 40,000 crs is to be raised through disinvestment.
• Tax credit of Rs 2000 to be provided to every person having income of up to Rs 5 lakh; this will benefit 1.8 crore people. A
person taking a loan for his first home from a bank or a HFC upto Rs 25,00,000 during 1.4.2013 to 31.3.2014 will be entitled
to an additional deduction of interest of upto Rs 100,000.
9
Equity Outlook
Sector Stance Remarks
BFSI Overweight
The reversal of the interest rate cycle will assist in managing asset quality better and would lead to
increase in credit growth. However, we like the private sector more than public sector due to
better management quality and higher balance sheet discipline
FMCG Overweight
We like the secular consumption theme. We prefer “discretionary consumption” beneficiaries such
as Cigarettes, IT hardware, durables and branded garments, as the growth in this segment will be
disproportionately higher vis-à-vis the increase in disposable incomes.
Automobiles Overweight
Raw material prices have started coming down which would boost margins. Auto loans are also
getting cheaper. We are more bullish on SUV’s and agricultural vehicles segment due to lesser
competition and higher pricing power.
Healthcare Neutral
We believe in the large sized opportunity presented by Pharma sector in India. India’s strength in
generics is difficult to replicate due to quality and quantity of available skilled manpower. With the
developed world keen to cut healthcare costs, and a vast pipeline of drugs going off-patent, Indian
pharma players are at the cusp of rapid growth. However, the government policy of putting price
control on selected drugs might cause some short term pressure on stock prices.
E&C Neutral
The significant slowdown in order inflow activity combined with high interest rates has hurt the
sector. Now since the interest rate cycle has started to reverse, we have turned more constructive
on this space.
Sector View
10
Sector Stance Remarks
Telecom Neutral The regulatory hurdles and competitive pressures seem to be reducing. Incumbents have started
to increase tariffs slowly and we believe that consolidation will happen sooner than expected.
IT/ITES Neutral Demand seems to be coming back in Europe. US volume growth has also remained resilient. With
pricing already bottomed out, we have turned positive on the space selectively.
Energy Neutral
With the ongoing price deregulation of diesel, we believe the total subsidy burden on Oil PSU’s
will come down during the course of the year. We are turning more constructive on the space
now.
Power Utilities Neutral We like the regulated return charteristic of this space. This space provides steady growth in
earnings and decent return on capital.
Metals Underweight Commodity prices have corrected significantly over the last few months due to concerns about
growth in China and developed parts of the world.
Cement Underweight Cement industry is facing over capacity issues and lackluster demand. With regulator taking a
strong view against pricing discipline, the profits of the sector are expected to stay muted.
Sector View
11
Debt Outlook
• The 10 year benchmark G-Sec ended the month at 7.91% yield with a fall of 14 Bps during the month.
• The G-Sec market started the last week of Feb on a positive note of OMO announcement, but lower GDP growth estimates. However, yields harden on high gross borrowing numbers.
• Indian Government has provided Rs 2000 cr as premium towards interest payments for bond buybacks in FY14 and the buyback will be cash and fiscal deficit neutral.
• On 29th January 2013, RBI cut the policy repo rate under the liquidity adjustment facility (LAF) by25bpsfrom 8% to 7.75% with immediate effect. RBI also cut the cash reserve ratio (CRR) of scheduled banks by 25 bps to 4% of their net demand and time liabilities (NDTL) effective the fortnight beginning February 9, 2013; as a result of this reduction, around Rs.18000 cr of primary liquidity will be injected into the banking system.
• The spread on a 10 year AAA rated corporate bond increased to 104 Bps on 28TH February 2013 from 88 Bps(as on 31st January 2013). The 28th February 2013 AAA Rated bond yields rose by 12 bps to 8.91% as compared to the yields a month earlier at 8.79%.
10-yr G-sec yield Yield curve
(%)
(%)
12
7.4
7.5
7.6
7.7
7.8
7.9
8.0
8.1
8.2
0.0
0.8
1.6
2.4
3.2
4.0
4.7
5.5
6.3
7.1
7.9
8.7
9.5
10
.2
11
.0
11
.8
12
.6
13
.4
14
.2
15
.0
15
.7
16
.5
17
.3
18
.1
18
.9
19
.7 7.20
7.40
7.60
7.80
8.00
8.20
8.40
8.60
8.80
9.00
Debt Strategy
Outlook Category Details
Long Tenure Debt
Indian long term debt is likely to see capital appreciation owing to the expected monetary easing. With the second policy rate cut happening in Jan2013, with a 25 Bps cut in Repo and CRR along with signals of future cuts in the policy rates in the coming quarter, but along with this is a lot of uncertainty in the market and hence would recommend to hold on to the current investments in the Longer term papers. These papers are suitable for both - investors who may want to stay invested for the medium term (exiting when prices appreciate) and those who would want to lock in high yields for the longer term.
Some AA and select A rated securities are very attractive at the current yields. A similar trend can be seen in the Fixed Deposits also. Tight liquidity in the system has also contributed to widening of the spreads making entry at current levels attractive.
With the second policy rate cut that happened in Jan2013, with a 25 Bps cut in Repo rate and CRR along with signals of future cuts in the policy rates in the coming quarter, but as there is influence of global factors in the market, a lot of uncertainty is coupled with it, hence, we would recommend to invest in and hold on to current investments in short term debt Due to liquidity pressures increasing in the market as RBI has a huge borrowing plan, short term yields would remain higher. Short Term funds still have high YTMs (9%–9.5%) providing interesting investment opportunities.
Short Tenure Debt
Credit
13
Forex
• INR has appreciated against three major currencies other than USD. INR depreciated by 0.9% against the US Dollar. Rupee has appreciated against dollar since the beginning of the calendar year by 1.87%
• Recovery in US economy increased risk appetite among global investors, sending funds flowing into riskier assets, including those in emerging markets. One more Factor for INR to strengthen is that it did not react adversely to fiscal deficit for April-December 2012 being reported at Rs 407,000 crore, or 78.8% of the budgeted fiscal deficit of Rs 991,000 crore for fiscal 2010-13.
• Volatility as last year is expected to continue as the rupee would track cues from the domestic markets as well as global shores.
Rupee movement vis-à-vis other currencies (M-o-M) Trade balance and export-import data
• The projected capital account balance for Q2 FY 12 is revised from Rs. 84,400 Cr to Rs. 78,800 Cr also the Q1 figure was revised downwards to Rs. 99,500 Crores from Rs. 1,02,100 Crores.
• We expect factors such as higher interest rates to attract more investments to India. Increased limits for investment by FIIs would also help in bringing in more funds though uncertainty in the global markets could prove to be a dampener.
-10000
40000
90000
140000
FY 10 (Q3) FY 10 (Q4) FY 11 (Q1) FY 11 (Q2) FY 11 (Q3) FY 11 (Q4) FY 12 (Q1) FY 12 (Q2)
Capital Account Balance
Exports during Jan, 2013 were valued at US $ 25.58 bn which was 0.82% higher than the level of US $ 25.38 bn during Jan, 2012. Imports during Jan, 2013 were valued at US $ 45.58 Bn representing a negative growth of 6.12% over the level of imports valued at US $ 42.95 Bn in Jan 2012 translating into a trade deficit of $19.96 Bn.
14
-25000
-20000
-15000
-10000
-5000
0
-20
-10
0
10
20
30 Export Import Trade Balance (mn $)
-0.9%
3.3%
2.2%
0.7%
-1.5%
-1.0%
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
USD GBP EURO YEN
Commodities
Precious
Metals
Oil & Gas
The expectation of steadier global growth is a good news for the oil counter given the excess liquidity available. There is no evidence of oil shortage and given the ample supply coupled with the decent growth prospects, we expect oil to remain firmer. While China is expected to stage a good performance this year is positive for the oil market, the signal coming from the Fed on unwinding of the stimulus program this year, keep a lid on the prices. As the risk of oil spike has subsided considerably, the upside on this counter looks capped.
Crude
Gold
Having risen consecutively for eleven years, dollar-gold price performance is one of the best among other asset classes, generating an annualized return of 18%. The global financial system was flood with central banks liquidity that had risen risk asset in the year 2012 and this is expected to further lift risk asset prices in the year 2013. Given this backdrop, one could expect a decent profit booking on the precious metal counter as the money flow shall now be diverted to equities that was under owned since 2008. We also expect liquidity to dry up significantly around end of 1QCY following the ECB’s LTROs amid a sharp pull back in dollar index -following the Fed’s signal to wind down the stimulus program this year - could rattle global commodity prices. The controlled measures by the central bankers to curb gold demand with a prime objective being to shore up confidence in the monetary and banking system, bullion in all probability will not be a free market. As bullion derivatives market is far larger than the size of physical metal, a small trigger is sufficient enough to create a big impact. Domestically, it now seems that gold has formed an intermediate top and one could see consider price pull back going ahead in the year 2013.
15
25000
26000
27000
28000
29000
30000
31000
32000
33000
75
85
95
105
115
125
135
16
Real Estate Outlook
Asset Classes Tier I Tier II
Residential
Prices continued to be at peak levels in most markets with sales being slow,
more so in the premium segment. Going forward, the expectation of a general
recovery of the economy is likely to improve the sentiment in the real estate
sector. Residential asset class shall continue to be the prime focus. If the RBI
does implement key policy rates cuts, cheaper home loans will significantly
improve the liquidity in the market.
A lot of new supply is expected to hit the market specially in NCR and Mumbai
regions in the near future as developers have been waiting for some time for
the liquidity situation to improve. In December, DLF launched a 13 acre
project, SkyCourt in Gurgaon which was completely sold off.
On an average, projects with Rs. 4,000 – 5,000 per sq. ft. entry pricing with
good developers in Pune, Bangalore, NCR and Mumbai suburbs are expected
to see good percentage returns.
The recent increase of 5-30% in the Ready Reckoner values, used to calculate
the stamp duty cost, from January 1 by the Maharashtra Government may act
as the slight dampener for the Mumbai market.
Demand in Tier II cities is largely driven by the trend towards
nuclear families, increasing disposable income, rising
aspiration to own quality products and the growth in
infrastructure facilities in these cities. Price appreciation is
more concentrated to specific micro-markets in these cities.
Cities like Chandigarh, Jaipur, Lucknow, Ahmedabad, Bhopal,
Nagpur, Patna and Cochin are expected to perform well.
Commercial/IT
Commercial asset class continues to be under pressure as most markets
continue to have an over-supply . Lease transactions are still slow as demand
has not yet revived. On an average, lease rentals have also not seen much
increase.
However, specific pre-leased properties with good tenant profile and larger
lock-in periods may present good investment opportunities over a long-term
horizon.
Lower unsold inventory and smaller unit sizes have led to
stable lease rentals in Tier II cities.
Real Estate Outlook
17
Please Note: Tier I* markets include Mumbai, Delhi & NCR, Bangalore, Pune, Chennai, Hyderabad and Kolkatta Tier II* markets includes all state capitals other than the Tier I markets The IC note is proposed to be presented every quarter
Asset Classes Tier I Tier II
Retail
Government has recently approved 51% foreign
ownership in multi-brand retail and 100% in single-brand
retail. Entry of foreign retailers in the Indian markets may
infuse new enthusiasm in the sector and improve the
demand for retail space.
However, it will take a gestation period of at least an year
for this to translate into actaul offtake of space. In the
immediate near term, unsold invesntory levels continue
to be high levels and lease rentals stagnant.
Long term investments in retail space along pre-
eastblished hubs may be attractive.
Tier II cities see a preference of hi-street retail as compared
to mall space in Tier I cities. While not much data on these
rentals gets reported, these are expected to have been
stagnant.
The mall culture has repeatedly failed in the past n the
Tier-2 cities. Whether the FDI in retail can change this
phenomenon can be known with more certainty once the
effect of FDI is more visible in Tier I cities.
Land
As Tier I cities continue to grow, new proposed /
implemented infrastructure developments at the
outskirts of these cities are making adjoining lands
expensive and attracting a lot of investor attention.
Caution should however be exercised due to the
complexities typically involved in land investments.
Land in Tier II and III cities along upcoming / established
growth corridors have seen good percentage appreciation
due to low investment base in such areas.
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18
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they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other
securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further
restricted to place orders only through Karvy Stock Broking Ltd.
The information given in this document on tax are for guidance only, and should not be construed as tax advice. Investors are advised to consult their
respective tax advisers to understand the specific tax incidence applicable to them. We also expect significant changes in the tax laws once the new
Direct Tax Code is in force – this could change the applicability and incidence of tax on investments
Karvy Private Wealth (A division of Karvy Stock Broking Limited) operates from within India and is subject to Indian regulations.
Karvy Stock Broking Ltd. is a SEBI registered stock broker, depository participant having its offices at:
702, Hallmark Business plaza, Sant Dnyaneshwar Marg, Bandra (East), off Bandra Kurla Complex, Mumbai 400 051 .
(Registered office Address: Karvy Stock Broking Limited, “KARVY HOUSE”, 46, Avenue 4, Street No.1, Banjara Hills, Hyderabad 500 034)
SEBI registration No’s:”NSE(CM):INB230770138, NSE(F&O): INF230770138, BSE: INB010770130, BSE(F&O): INF010770131,NCDEX(00236,
NSE(CDS):INE230770138, NSDL – SEBI Registration No: IN-DP-NSDL-247-2005, CSDL-SEBI Registration No:IN-DP-CSDL-305-2005, PMS Registration No.:
INP000001512” 19
Contact Us
Bangalore 080-26606126
Chennai 044-45925923
Coimbatore 0422-4291018
Hyderabad 040-44507282
Kolkata 033-40515100
Mumbai 022-33055000
Gurgaon 0124-4780228
Email: [email protected] SMS: ‘HNI’ to 56767 Website: www.karvywealth.com
Corporate Office : 702, Hallmark Business Plaza, Off Bandra Kurla Complex, Bandra (East), Mumbai – 400 051
Pune 020-30116238
Kochi 0484-2321831
Delhi 011-43533941
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