The upbeat trend of fund-raising by the Indian corporates and public sector undertakings is likely to continue in 2010.
It is expected that both India Inc and PSUs will together raise around $25 billion this year, says a Bloomberg.com report, quoting Ambit Capital Pvt Ltd, a securities brokerage and wealth management firm. Indian companies raised $15 billion from share sales in 2009.
The report, quoting Andrew Holland, chief executive officer of equities at Ambit Capital, said, though 2010 is not going to be a great year for stock market performance, especially the first half, consumer goods companies will counter any decline in the market. “I would have a defensive portfolio in the first half as global headwinds are a cause for concern,” said Holland in the report.
Holland said, companies such as ITC Ltd, Nestle India Ltd and Colgate-Palmolive India Ltd will counter any declines in the market, apart from companies in information technology, retailing, insurance and drug making space.
He also sees investors to sell emerging-market equities to buy US stocks if the economy recovers. “If the US grows at about 4% to 5%, the dollar will strengthen and money will move back,” Holland added in the report.