), of all the sectors that performed well over the last 29 yrs, broken down in to three decades, there were some interesting insights.
Barring the period between...
1991-2000, the next 2 decades saw stocks from chemical sector perform very well. Of the 973 stocks that gave >100% returns (simple returns: no div. reinvestments) between 2000-2010, 101 were from the chemical sector.
Likewise, between 2010-2020, 82 chemical stocks topped charts.
Just yesterday, I checked for all BSE Companies with 10 Yr CAGR >25% & found 189 stocks, of which 41 stocks were from Chemical sector. A quick glance through the list brings a smile to my face, as many of these were good quality stocks with decent credentials - Portfolio worthy.
(1/n) A thread on Kirloskar Ferrous Industries Ltd.
Founded in 1991, #Kirloskar Ferrous Industries Ltd. (KFIL) is in the business of Pig Iron and Grey Iron casting industry, serving infrastructure & construction, automotive, agriculture, manufacturing, textiles & steel sectors.
(2/n) Kirloskar Group was established in 1888. Laxmanrao Kashinath Kirloskar (20 Jun 1869 – 26 Sep 1956) was the founder of the Kirloskar Grp & the township of Kirloskarwadi, amongst India’s first industrial townships.
(3/n) Starting with a small bicycle repair shop at Belgaum on Kirloskar road, he manufactured India’s first iron plough, first Kirloskar product & chaff-cutters.
Shantanurao Kirloskar, Laxmanrao’s eldest son moved to Pune to start a diesel engines Co - Kirloskar Oil Engines Ltd.
(1/n) NSE Listed universe ownership trends:
- Total promoter ownership in NSE-listed #stocks⬆️by ~110bps (QoQ) to near 5 yr high of 50.9%
- FII ownership⬇️133bps (QoQ) to a 5 qtr low of 20.8% (highest sequential decline on a qtrly basis over last 19 yrs)
- MPC voted in 5:1 ratio
- Repo rate reduced by 40bps from 4.4% to 4%
- Reverse repo rate cut to 3.35% from 3.75%
- Global economy headed into recession, with mfg PMI at 11 yr low
- Growth rate of EMs expected to be 2.6% to negative 6%.
- MPC maintaining accommodating stance till growth revives
- Prodn of most sectors declined rapidly, industrial production shrank by 17%
- Food grain prodn at record, normal monsoon expected
- Kharif sowing higher by 44%, Rabi procurement in full flow
- Farm incomes to improve;
- Merchandise exports plunged 60.3%, imports contracted by 58.6% (worst in many yrs) in Apr
- Reserves increased & at US$487 bn
- Inflation could increase due to supply chain issues; reappraisal of import duties needed
- EM economies expected to face further outflows
Thread on #FinanceMinister's 2nd PC.
- Focus on migrant workers, street vendors, traders, small farmers
- 9 steps in total: 3 for migrant workers, 1 to sishu loan mudra, 1 for street vendors, 2 for small farmers and some more...
- overlaps with packages will exist.
- 3 crore farmers availed loans at concessional rates, with loans aggregating to Rs. 4L cr.
- Interest subvention was extended till Mar & now till 31 May 2020
- 25 lakh new kisan credit cards given to marginal farmers, totaling 25,000 cr of loans
- Liquidity support for farmers & rural economy continued in last 2 mths (#COVID19 duration); Banks have lent continuously
- Refinancing of 29,000 cr by NABARD in Mar alone
- RIDF support of 4,200 cr for rural infra
- state govts sanctioned 6700 cr to procure agri produce
#FranklinTempleton Concall highlights:
- Committed to India investments
- Providing daily liquidity is the challenge
- Will forego management fees
- orderly winding down is in best interest of the investor
- companies invoking force majeure
- Will return as soon as possible
(Inputs courtesy of @sathish_sesh)
- Trying to focus on other portfolio, to avoid panic redemption from other schemes
People from Templeton on call:
Vivek, Sanjay, Anand Radhakrishnan, CIO & Head of equity.
I think it is a serious liquidity issue but AMC will remain operational.
- It all started with Covid, which necessitated to lock the economy
- Been in the market for 25 years
- We don't know how this will pan out in the short to medium term
- Risk appetite will come back only when there is clarity on the market
#rbigovernor Press meet pts:
- MPC advanced its mtg, evaluated macro economic conditions
- Voted for a 75 bps repo rate cut, 4-2 majority
- 5.15% to 4.4%,
- Reverse Repo rate reduced by 90 bps to 4%
- done this imbalanced cut for banks to support lending
- Need to support growth considering economic conditions
- Will fight #COVIDー19 with measures available
- RBI is at work and in mission mode, monitoring financial conditions, will provide additional liquidity support
- will work for financial stability
- FY20 GDP estimates given by CSO is at risk 🙄
- To contain intensity, spread of #CoronavirusOutbreak
- FY21 estimates at great risk
- Risk factors: Supply chain disruptions too high, upside growth impulses through fiscal & monetary policies
- Food inflation to soften.