REG - India CapitalGrwthFd - Net Asset Value Daily Estimate

India Capital Growth FundAnnouncement

06/03/2018 12:30

RNS Number : 8553G
India Capital Growth Fund Limited
06 March 2018
6 March 2018
India Capital Growth Fund Limited (the "Company" or "ICGF")
Net Asset Value statement at 28 February 2018
Net Asset Value
The Company announces its Net Asset Value (NAV) per share as at 28 February 2018 was 113.50 pence.
In February the NAV was down 5.0% in Sterling terms, whilst the BSE Mid Cap TR Index was down 4.6%, delivering an under performance against the notional benchmark of 0.4%. In local currency terms, the NAV was down 4.8% for the month.
Portfolio update
Positive attribution to the portfolio's performance came from City Union Bank (up 10.1%), JK Lakshmi (up 3.2%) and Manpasand Beverages (up 0.6%). Negative attribution came from Motherson Sumi Systems (down 9.8%), Jain Irrigation (down 16.4%) and Dewan Housing Finance (down 6.2%).
Market and economic update
India's equity markets weakened during the month with the BSE Sensex down 5.0% and BSE Mid Cap TR Index down 4.5%, partially due to fears over the repercussions of the US$1.9bn fraud at Punjab National Bank and also over tighter provisioning requirements for banks to address impaired corporate loans. Foreign Institutions were net sellers (US$1.9bn for the month) whilst Domestic Institutions were net buyers (US$2.7bn for the month). The Rupee depreciated 2.5% against US Dollar and 0.1% against Sterling in the month.
GDP growth for the quarter ended December 2017 grew by 7.2% yoy compared to 6.5% in the previous quarter. The improvement in GDP growth was broad based with all three segments contributing; Agriculture up 4.1%, Industry up 6.8% and Services up 7.7%, which marks a turnaround in the country's economic growth momentum. The other positive economic news in the month was the uptick in capital expenditure (Gross Fixed Capital Formation) which rose 12% yoy from 7% in the previous quarter. This was partly driven by higher infrastructure and construction spending by the Government, but also by a positive base effect on account of demonetisation in the same quarter last year.
In the monetary policy meeting the Reserve Bank of India (RBI) left the benchmark repo rate unchanged at 6.0% and the policy stance neutral. However the RBI raised inflation estimates on the back of rising commodity prices, especially crude, the Government's proposal to increase Minimum Support Prices for Monsoon crops and the impact of fiscal slippage. CPI inflation for H1 FY19 is now estimated at 5.1% to 5.6% and for H2 FY19 at 4.5% to 4.6%. Bond yields continued to rise to 7.8%, up 30bps on fiscal and inflation pressures.
Portfolio analysis by sector as at 28 February 2018



Sector
No. of Companies
% of Portfolio
Financials
8
24.3%
Materials
8
21.1%
Consumer Discretionary
8
17.4%
Industrials
4
9.6%
Consumer Staples
4
9.2%
IT
2
7.9%
Real Estate
2
3.2%
Healthcare
2
3.1%
Total Equity Investment
38
95.7%
Net Cash

4.3%
Total Portfolio
38
100.0%



Top 20 holdings as at 28 February 2018



Holding
Sector
% of Portfolio
Dewan Housing Finance
Financials
5.4%
NIIT Technologies
IT
4.4%
Ramkrishna Forgings
Materials
4.3%
Motherson Sumi Systems
Consumer Discretionary
4.2%
Federal Bank
Financials
4.1%
Tech Mahindra
IT
3.5%
City Union Bank
Financials
3.1%
Jyothy Laboratories
Consumer Staples
3.1%
Finolex Cables
Industrials
3.1%
Sobha Developers
Real Estate
2.9%
Capital First
Financials
2.9%
Balkrishna Industries
Consumer Discretionary
2.9%
Sagar Cements
Materials
2.8%
Indusind Bank
Financials
2.8%
Kajaria Ceramics
Industrials
2.7%
Skipper
Materials
2.7%
The Ramco Cements
Materials
2.7%
PI Industries
Materials
2.6%
Welspun India
Consumer Discretionary
2.3%
Radico Khaitan
Consumer Staples
2.3%



Portfolio analysis by market capitalisation size as at 28 February 2018



Market capitalisation size
No. of Companies
% of Portfolio
Small Cap (M/Cap < US$2bn)
25
57.9%
Mid Cap (US$2bn < M/Cap < US$7bn)
9
25.5%
Large Cap (M/Cap > US$7bn)
4
12.4%
Total Equity Investment
38
95.7%
Net Cash

4.3%
Total Portfolio
38
100.0%

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