Risk Warning
The value of investments and the income from them may go down as well as up and investors may get back less than the amount invested. The tax benefits relating to ISA investments may not be maintained. Please refer to the Key Facts documents contained in the ISA/Share Plan Brochure & Application form for general and specific investment risks attaching to the individual trusts.
Read the detailed Risk WarningPast Performance
Past performance is no guide to future performance.
See latest monthly factsheet below for performance history.
Daily Data
At close 21-Feb-2012
Ord| Price | 238.63p |
| NAV | 258.62p |
| Prem/-Disc | -7.73% |
Source: Morningstar
NAV = Net Asset Value
Literature
Trust Details
New India Investment Trust PLC
Registered Office:
Bow Bells House,
1 Bread Street,
London
EC4M 9HH
Registered in England and Wales as an Investment Company Number 2902424
New India Investment Trust PLC
Objective
The objective of New India Investment Trust PLC is to achieve long-term capital appreciation by investing in companies which are incorporated in India or which derive significant revenue or profit from India, with dividend yield from the company being of secondary importance. This emphasis on long-term capital appreciation will be demonstrated by benchmarking the Company’s net asset performance against the Morgan Stanley Capital International India Index (in Sterling terms).
Manager's Monthly Report
February 2012
Market Review
Indian equities rebounded with double-digit gains in January, helped by better-than-expected earnings news, lower inflation and hopes of looser monetary policy. The rupee also recovered after recent weakness, posting its best gains against the US dollar in over a decade.
Inflation, albeit still high, slowed in December. The central bank reduced banks’ cash reserve requirement to alleviate a liquidity crunch but kept interest rates unchanged. Manufacturing activity expanded thanks to domestic demand. Nevertheless, the GDP growth forecast was lowered to 7% for the fiscal year to March.
After abruptly suspending the liberalisation of the local retail sector, the government made concessions by allowing foreign companies full ownership of single-brand stores. In a landmark case, the Supreme Court overturned a Mumbai high court judgement requiring Vodafone to pay US$2.9 billion in capital gains tax for its US$10.9 billion acquisition of Hutchison Essar in 2007. The ruling, which is in line with global tax practices, bodes well for foreign direct investments. We do not hold either of these companies.
Portfolio review
There were no major portfolio changes in January.
In earnings news, HDFC Bank posted solid profit and loan growth in the December-quarter despite higher interest rates. Grasim Industries benefited from a recovery in demand; its unit Ultratech Cement’s earnings almost doubled on firmer selling prices. Hero MotoCorp was aided by brisk sales of its rebranded motorbikes. Godrej Consumer Products and cigarettes maker ITC also delivered resilient results.
Conversely, Housing Development Finance Corporation’s earnings moderated because of the slowing domestic economy and persistent inflation although loan growth remained healthy. Infosys Technologies lowered its guidance for the fiscal year to March despite decent revenue and profit growth in the December-quarter.
Outlook
Several factors could sustain the market rebound. These include moderating inflation and looser monetary policy as well as continued positive economic news flow from the US. However, downside risks persist. An escalation in the eurozone debt crisis may renew risk aversion and cut short the rally given the market’s reliance on foreign fund flows. Additional signs of slowing growth too may exacerbate uncertainties. Meanwhile, elections, particularly in the politically significant Uttar Pradesh state, will be closely watched.
Source: Monthly Factsheet Aberdeen Asset Managers Limited