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Short notes on the Indian economy



The Indian growth story has continued in spite of the Satyam non-governance issue and the global economic slowdown. It has fascinated global majors like CLSA, HSBC, Citigroup, Crown Capital, Fidelity, Goldman Sachs, Morgan Stanley, UBS, T Rowe Price International, Capital International and ABN Amro among others to enter the Indian financial market.

  • The recent interest from foreign institutional investors in the stock of Housing Development Finance Corporation (HDFC) seems to have increased the housing finance company's stock price. FIIs Europacific and Growth Fund of America Inc selected up stake in the company in March 2009. Other FIIs such as Citigroup, CMP Asia, DB International, Merrill Lynch, Aberdeen Asset Management, Copthal Mauritius Investment, JP Morgan and Government of Singpaore previously hold stakes in the company.
  • Fidelity FID Funds Mauritius has bought a substantial stake in UTV Software in March 2009 for approximately US$ 2.34 million
  • Baring PE Fund has bought major stakes in Mphasis, a leading software company in India in March 2009 for approximately US$ 25.55 million.
  • Kotak Mahindra's investment in banking business signed an exclusive alliance with GCA Savvian Group Corp., a medium-sized Japanese bank taken by bankers pooled from Goldman Sachs, KPMG, Credit Suisse and Merrill Lynch and Co. Inc., for international mergers and acquisitions (M&A) in the so-called India-Japan corridor.
  • In March 2009, FII Kotak Mahindra UK Ltd, bought a great stake in NIIT from another FII, Swiss Finance Corporation Mauritius Ltd for over US$ 897,414.
  • HSBC Bank Mauritius Ltd bought in excess of 51,000 shares of Intellivisons Software for US$ 144.94 billion.
  • In January 2009, Avendus helped One97 Communications lift US$ 8.6 million from Intel Capital.
  • Goldman Sachs selected up an 8.16 per cent stake in New Delhi Television Ltd (NDTV) and a minority stake in Sterling & Wilson Pvt. Ltd.
  • London-based private equity firm, Greater Pacific Capital, is planning to launch a new fund with a corpus of US$ 750 million has been invested in India and China. The company, which is in progress operations in 2005, initially launched a fund with a corpus of US$ 345 million. 80 % of the fund has already been invested in India and China.
  • Nomura Holdings, the biggest Japanese securities firm, launched its equity sales, trading and investment banking operations in India though its subsidiary Nomura Financial Advisory and Securities. Nomura has incorporated the franchises of failed US investment bank, Lehman Brothers units in India, which it had acquired in October 2008
  • Morgan Stanley is investing US$ 19.72 million into its Indian retail stock broking and portfolio management services firm Morgan Stanley India Financial Services (MSIFS). The firm in recent times launched private wealth management services, primarily for the high-net worth individuals (HNI) and non-resident Indians (NRI).
  • Jefferies India Pvt Ltd, a subsidiary of the US-based Jefferies Group, published that it had received a category-1 merchant banking licence from SEBI. The licence allows investment banks to offer M&A, private equity and capital markets advisory services to private and public companies in India, in accumulation to cross border M&A and international capital markets services.
  • Fresh deals by Blackstone in Nuziveedu Seeds (US$ 50 million) and Morgan Stanley, through its Asia fund, for a minority stake in Biotor Industries (US$ 37.8 million) are illustrations of continued interest of FIIs in Indian markets.
  • Goldman Sachs announced infusion of US$ 72.96 million of investment in its wholly-owned NBFC Pratham Investments and Trading Private Ltd. In March of last year, Goldman Sachs had infused US$ 22.75 million as capital in Pratham Investments after taking over it.
  • Morgan Stanley Mauritius acquired a enormous stake in Infrastructure Development Finance Corp (IDFC) from Goldman Sachs in March 2009 for US$ 11.61 million.
  • RREEF Alternative Investments, the global alternative investment management business of Deutsche Bank, deviced to invest over US$ 1 billion in the country.Private equity firm Blackstone has taken up a 26 % in MTAR Technologies for US$ 65 million.
  • Citigroup, Morgan Stanley, Goldman Sachs and BSMA have selected up a combined stake of over 7% in Gitanjali Gems at US$ 23.51 million.
  • Fidelity Investments International has chosen up close to 7 % equity in Transport Corporation of India (TCI) for US$ 10.72 million.
  • JP Morgan Chase has invested approximately US$ 51.37 million in BPTP Ltd, a Delhi-based real estate company.
Mutual Funds
Mutual Funds