India Capital Growth Fund Limited Net Asset Value(s) (0855R)
06 December 2016 - 9:17PM
UK Regulatory
TIDMIGC
RNS Number : 0855R
India Capital Growth Fund Limited
06 December 2016
6 December 2016
India Capital Growth Fund Limited (the "Company" or "ICGF")
Net Asset Value statement at 30 November 2016
Net Asset Value
The Company announces its Net Asset Value per share as at 30
November 2016 was 91.09 pence.
In November the Net Asset Value (NAV) was down 10.8% in Sterling
terms, whilst the BSE Mid Cap Total Return Index was down 11.3%,
delivering an outperformance against the notional benchmark of
0.5%. In local currency terms, the NAV was down 6.2% for the
month.
Portfolio update
Positive attribution to the portfolio's performance came from
Welspun India (up 22.6%), Tech Mahindra (up 11.4%), Indian Bank (up
9.1%) and Essel Propack (up 6.8%). Negative attribution came from
Dewan Housing (down 21.8%), Federal Bank (down 13.6%) and Kitex
Garments (down 19.9%).
Market and economic update
Indian equity markets corrected this month as the BSE Sensex
fell 4.6%, whilst the BSE Mid Cap Index was down 6.8%, both in
local currency terms. The selling pressure arose as a consequence
of Prime Minister Modi's surprise decision to "demonetise" all
INR500 and INR1,000 notes, accounting for 85% of total cash in
circulation. This is a bold attempt to purge the economy of "black"
money (income on which no tax has been paid) and counterfeit notes
which prompted a tsunami of cash deposits (circa US$115bn) entering
the banking system. Having started the year at 7.3%, two year
Government yields dipped below 6%, contrasting with rising bond
yields in developed markets, driven by the expectation of better
economic growth from a Trump Presidency. In November, Foreign
Institutions were net sellers (US$2.6bn), while Domestic
Institutions were net buyers (US$2.7bn) and India's Rupee
depreciated 2.3% against the US Dollar and 5.2% against
Sterling.
India's GDP for Q2 FY17 (ended September 2016) grew at 7.3%,
driven by agricultural growth and increased Government spending.
However, looking ahead, consensus estimates suggest that the
economic impact of demonetisation will be severe (0.5% to 1.0%
reduction in GDP), given India's high dependence on cash based
transactions. Consumption based activity has been hardest hit with
companies reporting collapsing sales and weak pricing, food
products included. Elsewhere sectors such as real estate, jewellery
and construction related industries will feel the pinch. Cash in
the system is currently very low and much depends on how quickly
the Government can reliquefy the economy, but current expectations
assume a six month slowdown, at best. We anticipate lower interest
rates and additional growth supporting policies in the New Year.
Although uncertainty about the near term impact is high, if
successful, this policy could prove a crucial step in the positive
development of India's economy. Elsewhere Consumer Price Inflation
for October came in at 4.2%, a 14 month low, led by lower food
prices whilst the impact of demonetisation is expected to have
further deflationary effects.
Portfolio analysis by sector as at 30 November
2016
Sector No. of Companies % of Portfolio
Financials 9 26.8%
Materials 8 18.7%
Consumer Discretionary 7 17.9%
Industrials 5 10.0%
Consumer Staples 4 9.5%
Healthcare 4 7.3%
IT 2 5.1%
Total Equity Investment 39 95.3%
Net Cash 4.7%
Total Portfolio 39 100.0%
Top 20 holdings as at 30 November 2016
Holding Sector % of Portfolio
Yes Bank Financials 5.0%
Federal Bank Financials 4.4%
Jyothy Laboratories Consumer Staples 4.2%
Dewan Housing Financials 4.0%
Motherson Sumi Systems Consumer Discretionary 3.5%
Dish TV India Consumer Discretionary 3.4%
PI Industries Materials 3.4%
Kajaria Ceramics Industrials 3.2%
City Union Bank Financials 2.9%
Welspun India Consumer Discretionary 2.9%
The Ramco Cements Materials 2.8%
Indusind Bank Financials 2.8%
Essel Propack Materials 2.6%
Finolex Cables Industrials 2.6%
Sobha Developers Financials 2.6%
Max Financial Services Financials 2.6%
Divis Laboratories Healthcare 2.6%
Tech Mahindra IT 2.6%
Berger Paints India Materials 2.6%
NIIT Technologies IT 2.5%
Portfolio analysis by market capitalisation
size as 30 November 2016
Market capitalisation No. of Companies % of Portfolio
size
Small Cap (M/Cap < US$2bn) 26 60.9%
Mid Cap (US$2bn < M/Cap
< US$7bn) 9 23.0%
Large Cap (M/Cap > US$7bn) 4 11.5%
Total Equity Investment 39 95.3%
Net Cash 4.7%
Total Portfolio 39 100.0%
* Please note that as at 1 September 2016, our mid cap market
capitalisation definitions have been amended from INR60bn < x
< INR250bn to US$2bn < x < US$7bn
This information is provided by RNS
The company news service from the London Stock Exchange
END
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December 06, 2016 05:17 ET (10:17 GMT)
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