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2016 to be a Favourable Year fIndia IPOs in terms of prot gro

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As we start 2016 let!s tr" and understanprospe#ts of investing protabl" in $%uit"Publi# O&erings 'IPOs(

)here are a few important fa#tors to #onsFirst let us loo+ at the positive aspe#ts,-

7/25/2019 2016 to be a Favorable Year for India IPOs in terms of profit growth -22nd Jan -16.pptx

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1. Earnings growth expectation fromcorporate India

.orporate India/s earnings growth is epto re#over to low double digits in FY16 amove up sharpl" thereafter bringing an

the earnings downgrades #"#le whi#h befrom FY12 as "ou #an see from the #har#ompiled b" CLSA Research.

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our#e, .A

3esear#h

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)he fa#tors whi#h ma" drive earnings grthe ongoing re#over" in urban #onsum

whi#h is due to a steep wage hi+e fgovernment emplo"ees as per the 3epthe eventh Pa" .ommission*

e#tors su#h as #onsumer durableautomobiles and ele#troni#s #ould wit

better growth rates as government empspend more of their in#reased salari

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2* 4a#ro-e#onomi# situation

5ith re#ord low oil '#urrentl" #rude is %uoted a

2-278 per barrel( as well as soft #ommodit" pprospe#ts for further rise in the #onsumer in9a

'.PI-#onsumer pri#e inde( seems limgovernment has also ta+en some meaningful arrest the food pri#es 'parti#ularl" vegetables

and fruits(* As long as the #entral angovernments remain vigilant on this there

#han#es of +eeping the in9ation in the range to 6*:; 'whi#h is the range whi#h 3

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)his in turn ma" help 3

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3. Ease of doing business

Over the last few months the governmemade e&orts to redu#e the number of apre%uired to set up business in a bid to investments from foreign and doinvestors*

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4. Increased goernment spending

)he government has in#reased spoutla"s in roads and railwa"s and furthein the union budget due in Februain#rease #onden#e levels in the e#onom

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!. "udget #$1%

)his will be the most #losel" wat#hed evand the government is epe#ted to presgrowth-oriented budget whi#h will set t

tone for the #ontinued optimism in thee#onom" in general and in the e%uit" min parti#ular*

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%. I&' &ipe(ine of companies

)here is a health" pipeline of #ompanieintend to o&er e%uit" to the publi# throIPO route in the net 12 months* )his big names su#h as the Indian arm of thtele#om giant >odafone and man" others

)here is a strong amount of investor appIPOs as well as #an be seen from the sure#ent issues li+e Inter globe aviation

airlines( ?ara"ana @ruda"ala"a Al+em la

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5hile all the above fa#tors portrareasons for the )ear #$1% to be a proone for inestors+ one must a(so ,e)e on certain factors which ma

spoi(sport.)hese are,

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1. -onsoon

)here has been a ba#+ to ba#+ drought inIndia for the last two "ears* )his has mut

demand and growth*

It is hoped that this "ear the monsoon wnormal whi#h will help the e#onom" ingenerating demand and will boost earnin#ompanies whi#h are dependent on the fse#tor li+e )ra#tors two-wheelers fertili#onstru#tion #onsumer durables fast mo#onsumer goods 'F4.B(*

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#. isca( de*cit

A lot depends on the government

whether the" sti#+ to the C*:; target f

or whether the" are willing to raise t

would be #lear in the Enion

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C* Blobal growth

Bloball" growth is unli+el" to be as robuspro=e#ted last "ear and hen#e #ompanies

dependent on eports and foreign revenunot see mu#h of a re#over"* ast month!sdevelopments in .hina of redu#tion in Bgrowth due to over leveraging is an eam

@owever .hina still has a huge domesti#of over 1 billion people and the governmen#ourage domesti# spending*

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G*E Federal 3eserve)he stan#e of E Fed on further interest

hi+es in 2016 and its impa#t on global e%mar+ets would also need to be #arefull"

wat#hed*

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o the overall pi#ture from an investor!sview is positive and protable opportunitepe#ted to emerge in 2016*

/app) Inesting00

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