Source - RNS
RNS Number : 0132K
India Capital Growth Fund Limited
06 April 2018
 

6 April 2018

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

Net Asset Value statement at 31 March 2018

Net Asset Value

The Company announces its Net Asset Value per share as at 31 March 2018 was 107.50 pence.

In the month the Net Asset Value (NAV) was down 5.3% in Sterling terms, whilst the BSE Mid Cap TR Index was down 5.5%, delivering an out performance against the notional benchmark of 0.2%. In local currency terms, the NAV was down 3.4% for the month.

Portfolio update

Positive attribution to the portfolio's performance came from Jyothy Labs (up 15.3%), Indusind Bank (up 6.9%) and Exide Industries (up 7.4%). Negative attribution came from Dewan Housing Finance (down 6.6%), Skipper (down 12.0%) and BLS International (down 32.2%).

Market and economic update

India's equity markets continued to correct, with both the BSE Sensex and the BSE Mid Cap TR Index down 3.6%. Weakness came on the back of a broader equity "sell off" as the United States Federal Reserve turned more hawkish and the Trump administration slapped import tariffs on China, raising concerns of global trade war. In addition, a rising current account deficit and recent losses by the BJP in local elections added to the anxieties. Foreign Institutions were net buyers (US$2bn for the month), whilst domestic institutions were net buyers (US$1bn for the month). India's Rupee remained unchanged against the US Dollar whilst depreciating 2.0% against UK Sterling.

India's quarterly current account deficit (CAD) widened to 2.0% of GDP in Q4CY17 (October to December) compared to 1.4% in the same quarter last year. This was led by increases in imports, particularly oil, prices of which continued to rise. Export growth remained weak. Consumer price inflation slowed to 4.4% in February from 5.1% in January, as food prices moderated. Skymet, a private weather forecasting agency in India, announced that monsoon rains are expected to be average over the course of 2018.

On the political front, one of the BJP's (ruling party) key allies, the TDP (Telugu Desam Party), pulled out of the National Democratic Alliance over the issue of granting "special status" to the state of Andhra Pradesh. In recent local elections, the BJP lost three seats in the Lok Sabha (lower house), two from the Uttar Pradesh and one from Bihar. Although these results have no implication on the overall strength of the Government, they will affect sentiment particularly with the General Election approaching.

 

 

 

Portfolio analysis by sector as at 31 March 2018




Sector

No. of Companies

% of Portfolio

Financials

8

24.0%

Materials

8

21.0%

Consumer Discretionary

8

17.3%

Consumer Staples

4

9.9%

Industrials

4

9.4%

IT

2

8.5%

Real Estate

2

3.0%

Healthcare

2

3.3%

Total Equity Investment

38

96.3%

Net Cash


3.7%

Total Portfolio

38

100.0%




Top 20 holdings as at 31 March 2018




Holding

Sector

% of Portfolio

Dewan Housing Finance

Financials

5.3%

NIIT Technologies

IT

4.8%

Ramkrishna Forgings

Materials

4.2%

Motherson Sumi Systems

Consumer Discretionary

4.1%

Federal Bank

Financials

4.0%

Tech Mahindra

IT

3.7%

Jyothy Laboratories

Consumer Staples

3.7%

City Union Bank

Financials

3.2%

Indusind Bank

Financials

3.1%

Finolex Cables

Industrials

3.0%

Balkrishna Industries

Consumer Discretionary

2.9%

Kajaria Ceramics

Industrials

2.8%

Sobha Developers

Real Estate

2.8%

Capital First

Financials

2.8%

Sagar Cements

Materials

2.7%

PI Industries

Materials

2.7%

The Ramco Cements

Materials

2.6%

Skipper

Materials

2.5%

Exide Industries

Consumer Discretionary

2.4%

Divi's Laboratories

Healthcare

2.4%




Portfolio analysis by market capitalisation size as 31 March 2018




Market capitalisation size

No. of Companies

% of Portfolio

Small Cap (M/Cap < US$2bn)

25

57.7%

Mid Cap (US$2bn < M/Cap < US$7bn)

9

25.8%

Large Cap (M/Cap > US$7bn)

4

12.8%

Total Equity Investment

38

96.3%

Net Cash


3.7%

Total Portfolio

38

100.0%

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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