Net Asset Value(s) - Replacement

RNS Number : 2560Q

India Capital Growth Fund Limited

10 October 2013

 



10 October 2013

India Capital Growth Fund Limited (the "Company" or "ICGF")

Net Asset Value statement as at 30 September 2013 - Correction

The following amendment has been made to the 'Net Asset Value' announcement released on 3 October 2013 at 14.29 under RNS No 6859P:

The three tables have been updated to reflect correct data as at 30 September 2013. All other details remain unchanged. The full amended text is shown below.

Net Asset Value

The Company announces its Net Asset Value per share as at 30 September 2013 was 38.95 pence.

In September the Net Asset Value (NAV) was up 8.9% in Sterling terms, whilst the BSE Mid Cap Index was up 7.8%, delivering an outperformance against the notional benchmark of 1.1% in Sterling terms. Against Ocean Dial's Composite Index, the portfolio delivered an outperformance of 1.7%.

Portfolio update

Positive contributors to the portfolio's performance came from Yes Bank (up 18.1%), Motherson Sumi (up 18.4%) and Emami (up 18.2%). Negative attribution came from Manappuram Finance (down 22%), Dewan Housing (down 12.3%) and Divi's Labs (down 2.4%).

Market and economic update

In September, Indian equity markets recovered some recent losses. The Sensex closed up 4.1%, whilst the BSE Mid Cap Index finished 5.8% higher as foreign institutional investors were net buyers of approximately USD2bn of equities. This inflow follows three consecutive months of selling. The market sentiment was further supported by fresh policy measures announced by the new Governor of the Reserve Bank of India (RBI), Dr. Raghuram Rajan. The intention is to underpin the exchange rate by attracting higher foreign currency inflows through a limited offer of Sovereign credit to corporates and non-resident Indians, specifically absorbing part of the currency risk through a swap arrangement with the RBI. This helped INR appreciate 1.9% against Sterling and 5.7% against USD this month.

Progress is being made on improving India's macro-economic data, notably the second quarter (FY14) current account deficit, which was reported in June at USD21bn. This is still high in absolute terms but lower than consensus estimates. The monthly trade deficit has halved from USD20.1bn in May to USD10.9bn in September as higher duties on gold and other articles have reduced the import cost and exports are gradually recovering. The government forecasts a reduction in the current account deficit from a record USD88bn in FY13 to USD70bn by end of FY14 and achieving a fiscal deficit target of 4.8% of GDP; currently both look achievable.

Later in September, the RBI surprised the market by increasing headline interest rates by 25 basis points to 7.5%, citing inflationary concerns driven by food prices and the depreciated currency. Both wholesale and consumer price inflation remain uncomfortably high, with the former rising to 6.1%, whilst the latter fell to 9.5% although it still remains elevated. There was some relief for banks however as standby borrowing facility costs were reduced by 0.75%, and the minimum daily maintenance of the cash reserve ratio (CRR) was reduced. Credit growth is showing signs of nascent recovery but it is too early to cause a rethink.

Portfolio analysis by sector as at 30 September 2013

Sector	No. of Companies	% of Portfolio
Financials	10	20.5%
Industrials	6	14.4%
IT	5	11.0%
Consumer Discretionary	4	13.9%
Consumer Staples	3	11.8%
Healthcare	3	11.0%
Energy	2	5.2%
Materials	1	1.6%
Telecommunications	1	4.2%
Total Equity Investment	35	93.6%
Net Cash		6.4%
Total Portfolio		100.0%

Top 20 holdings as at 30 September 2013

Holding	Sector	% of Portfolio
Jyothy Laboratories	Consumer Staples	5.9%
KPIT Cummins Infosystems	IT	5.0%
Lupin	Healthcare	4.5%
Idea Cellular	Telecommunications	4.2%
Kajaria Ceramics	Consumer Discretionary	4.1%
Motherson Sumi Systems	Consumer Discretionary	3.8%
IPCA Laboratories	Healthcare	3.7%
Emami	Consumer Staples	3.6%
Federal Bank	Financials	3.6%
Eicher Motors	Industrials	3.4%
Jammu & Kashmir Bank	Financials	3.4%
Dish TV India	Consumer Discretionary	3.0%
NIIT Technologies	IT	3.0%
Berger Paints India	Consumer Discretionary	2.9%
Divi's Laboratories	Healthcare	2.9%
Max India	Industrials	2.8%
Cairn India	Energy	2.8%
Larsen & Toubro	Industrials	2.8%
Indusind Bank	Financials	2.8%
Yes Bank	Financials	2.6%

Portfolio analysis by market capitalisation size as at 30 September 2013

Market capitalisation size	No. of Companies	% of Portfolio
Small Cap (M/Cap <INR15bn)	4	5.5%
Mid Cap (INR15bn <M/Cap<INR100bn)	19	54.0%
Large Cap (M/Cap > INR100bn)	11	34.1%
Unlisted	1	0.0%
Total Equity Investment	35	93.6%
Net Cash		6.4%
Total Portfolio		100.0%

 

END

 

 

NAVNKKDPPBDDOKD