Nasdaq 4 June 2010
"The Piramal deal was a facelift for the pharma sector as that is what brought the shares of generic drugmakers in the limelight," said Jagannadham Thunuguntla, equity head at SMC Capitals Ltd. in New Delhi.
Published on: Mar 3, 2016
Transcripts - Nasdaq 4 June 2010
India Consumer Goods, Healthcare Funds Top Performers In May
By Shikhar Balwani, Of DOW JONES NEWSWIRES
MUMBAI -(Dow Jones)- Indian equity funds focusing on the consumer goods and healthcare
sectors were top performers in May as weakness in domestic markets-- amidst concerns over
debt problems in Europe--led cautious investors to seek comfort in so-called defensive, or less-
The 10-share Bombay Stock Exchange's Fast-Moving Consumer Goods, or FMCG, Index
climbed 3.6% last month, helped largely by a 6.8% jump in shares of heavyweight firm ITC Ltd.
(500875.BY), which has a 52.3% weighting on the index.
The cigarettes-to-hospitality firm posted a 27% rise in its fiscal fourth- quarter net profit to
INR10.28 billion and said its board will consider a bonus share issue June 18.
According to New Delhi-based Value Research, three funds investing in consumer goods stocks
achieved an average return of 2.5% in May, a sharp contrast to the 3.5% slide in the BSE's
benchmark 30-stock Sensitive Index, or Sensex, and the 3.6% decline seen in the National Stock
Exchange's 50-stock S&P CNX Nifty.
Four funds focusing on pharma stocks also outperformed the benchmark indices by delivering a
2.4% average return.
"The numbers clearly indicate that funds were playing the defensive theme," said Hiren Dhakan,
associate fund manager with Bonanza Portfolio Ltd.
The 17-member BSE HealthCare Index rose 2.7% last month as shares of generic drugmakers
received a shot in the arm after Abbott Laboratories (ABT) agreed to acquire Piramal Healthcare
Ltd.'s (500302.BY) generic drugs unit for about $3.7 billion, the latest in a series of deals
through which Western drug makers are looking to strengthen their presence in emerging
markets such as India.
"The Piramal deal was a facelift for the pharma sector as that is what brought the shares of
generic drugmakers in the limelight," said Jagannadham Thunuguntla, equity head at SMC
Capitals Ltd. in New Delhi.
The broader category of equity-diversified funds, however, matched the performance of
benchmark indices in May. The average return of 260 open-ended funds was a negative 3.6%,
according to Value Research. The category had in April delivered better returns than the indices
for the first time in three months.