Prior to Thursday, Wood only had a dedicated China portfolio, but clearly the man who predicted the subprime crisis of 2008 sees something in India’s potential that not many Indians see themselves.
The India-dedicated portfolio of 17 stocks is filled with names from the realty and energy sectors in line with his optimism for global cyclical stocks. However, the market rewarded only half of the stocks part of his portfolio led by the stocks he is most bullish on – Reliance Industries, ICICI Bank and ICICI Prudential Life Insurance. May this love affair continue and prosper.
Smallcap pharma have a big day
Shares of small and medium-sized pharmaceutical companies had an enthralling day today as the NPPA sweetened their tea with an unexpected announcement. The national drug pricing regulator allowed for an up to 50 per cent hike in prices of certain drugs keeping in mind the surging bulk drug prices used in their manufacturing. The break is much needed for pharmaceutical companies, whose bottomline just got fatter. Shares of Auro Lab, Indoco Remedies, Hikal, and Caplin Point Labs surged 2-20 per cent.
Nomura makes a case for Adani Ports
Shares of Adani Ports and Special Economic Zone must send a “thank you” note to the analysts at Nomura India. The brokerage firm argued that the concerns surrounding the shenanigans at the group level should not pose any risk to one of the largest port companies in India. Further, it highlighted that the cash flow position of almost all the firms of the Adani Group has improved and, therefore, may not require much debt or equity capital going ahead.
The market seemed convinced as the stock ended nearly 2 per cent higher. Adding to Nomura’s convincing argument was the strong cargo volume performance by the company in June, further underlining the fundamental case for the port company.
