India Capital Growth – Shakeout uncovers value

The Indian stock market slid in September, extending its run of losses in 2018, and has seesawed since. Higher oil prices fed through into inflation concerns; rising interest rates; a fall in the exchange rate between the Indian rupee and other key currencies such as the US dollar; and what appears to have been, a liquidity squeeze (where some companies found it hard to borrow money)…. Read more

A sharp fall in the oil price since mid-October may now be heralding a recovery in Indian equities. Against that backdrop, India Capital Growth (IGC)’s manager and adviser (David Cornell and Gaurav Narain, respectively) see real value emerging in the portfolio.

They point out that company earnings are growing once again and, while volatility may persist in the run up to elections in April/May 2019, they have been able to raise cash for redeployment into attractive opportunities. This could prove to be the buying opportunity that some investors have been waiting for. The interest in this trust is illustrated by the resilience in its discount over this period, which is currently narrower than its peers.

Mid-and-small-cap listed investments in India

IGC’s investment objective is to provide long-term capital appreciation by investing (directly or indirectly) in companies based in India. The investment policy permits the company to make investments in a range of Indian equity securities and Indian equity-linked securities. The company’s investments are predominantly in listed mid-and-small-cap Indian companies.

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NB: Marten & Co was paid to produce this note on India Capital Growth Fund and it is for information purposes only. It is not intended to encourage the reader to deal in the security or securities mentioned in this report. Please read the important information at the back of this note. QuotedData is a trading name of Marten & Co Limited which is authorised and regulated by the FCA. Marten & Co is not permitted to provide investment advice to individual investors categorised as Retail Clients under the rules of the Financial Conduct Authority.

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