**[investwise]** MS: Playing Defense, Selling Consumer Discretionaries!

 

Sector Model Portfolio: As discussed in our note entitled, India Strategy: The Next Theme: Shift from Consumption to Investment, dated March 23, 2010, we believe the time has come to underweight Consumer Discretionary (with the second rate hike behind us) and to add further weight to our Industrials sector position. We are reducing our Consumer Discretionary weighting by 100bp and adding the same to Industrials. Accordingly, we are removing Maruti (downgraded to Equal-weight by our analyst Binay Singh, on April 26) and Zee Entertainment from our Focus List. We are overweight Energy, Financials, and Industrials, and underweight Consumer Discretionary, Healthcare, Materials, Technology, and Utilities. • Adding Bharti and Adani Power to Focus List: Following the upgrade of Bharti Airtel to Overweight today by our analyst Vinay Jaising, we are adding it to our Focus List. He argues that the pain pertaining to 3G overbidding, tariffs wars as well as Zain is behind us. The stock has underperformed the market by around 50% over the past 12 months and by about 15% over the past three months, taking valuations to close to historical lows. We are also adding Adani Power to our Focus List. Adani Power could become the second-largest private generating company in India by F2013 with 6600 MW under construction. We expect a 30%+ equity IRR across its portfolio given early commissioning of plants and healthy proportion of merchant capacity. The stock trades at a discount to its domestic and global peers on F2012E. Safe Harbor Statement: Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.   Nothing in this article is, or should be construed as, investment advice.

__._,_.___

Reply to sender | Reply to group | Reply via web post | Start a new topic

Messages in this topic (1)

Recent Activity:

• New Members 2

Visit Your Group

*****************************************
http://in.groups.yahoo.com/group/investwise/

INVESTMENTS IN INDIA
We are low-risk, long-term investors. 

Stocks, mutual funds and the entire investment gamut.  Only financing/investment avenues in India will be discussed. 

For any assistance, questions or improvement ideas, contact investwise-owner@yahoogroups.co.in

****************************************************************

NEW! ==== Check our LINKS and FILES sections for a world of information. REGULARLY UPDATED.

NEW! ==== Check "Tracklist" in Links and Files sections for Investment Ideas.

****************************************************************

Switch to: Text-Only, Daily Digest • Unsubscribe • Terms of Use

.

__,_._,___