Managing Partner, Ampersand Investment Advisors

Rahul Singh

Managing Partner

Ampersand Investment Advisors

Equity Bottom-Up

<p>Our markets continued to sustain positive momentum this fiscal, hitting highs as we pen this newsletter. The optimism this time around was triggered by lower probability of El Nino impacting monsoons. Nevertheless, we seem to have peaked in terms of news flows for now, especially with the much anticipated GST rates and prospect of an early onset of monsoons failing to enthuse. Although we retain positive stance on equities from a 12-month perspective, driven by domestic economic recovery and steady migration of domestic savings, we see distinct possibility of a corrective phase which could last a quarter or more.</p><p>Corporate results so far have disappointed a tad which suggests a slower economic recovery coming out of demo. However, management commentary on business outlook for FY18 has been largely positive. This especially holds good for consumer non-durables, construction, cement and even realty despite the impending GST transition. The banking and financial sector too is showing signs of mend, albeit slower than general expectations. It is this universe of domestic centric sectors that we prefer over the exporters and overseas dependent sectors. We focus in this edition on one of such domestic growth sector –aviation.  </p>

Our markets continued to sustain positive momentum this fiscal, hitting highs as we pen this newsletter. The optimism this time around was triggered by lower probability of El Nino impacting monsoons. Nevertheless, we seem to have peaked in terms of news flows for now, especially with the much anticipated GST rates and prospect of an early onset of monsoons failing to enthuse. Although we retain positive stance on equities from a 12-month perspective, driven by domestic economic recovery and steady migration of domestic savings, we see distinct possibility of a corrective phase which could last a quarter or more.Corporate results so far have disappointed a tad which suggests a slower economic recovery coming out of demo. However, management commentary on business outlook for FY18 has been largely positive. This especially holds good for consumer non-durables, construction, cement and even realty despite the impending GST transition. The banking and financial sector too is showing signs of mend, albeit slower than general expectations. It is this universe of domestic centric sectors that we prefer over the exporters and overseas dependent sectors. We focus in this edition on one of such domestic growth sector –aviation.  

Spicejet Ltd

Not a Bed of Roses - May 2017 Newsletter