Videos

Date: 06th June 2024 | Publication: Ausbiz Mugunthan Siva from India Avenue Investment Management reflects on the recent blow to the Bharatiya Janata Party (BJP) in the Indian elections. He views the unexpected election results and the subsequent decline in Indian equities as indicative of discontent among the Indian population. It seems the traditional majority, according to Mugunthan, is no longer satisfied with the ruling party’s focus on top-tier GDP locations and wealth accumulation at the expense of the needs of those in rural India. In assessing the impact of the election results on the economy, Mugunthan dispels fears that a potential coalition government would hinder India’s impressive growth trajectory. Instead, he attributes continuous growth over the last 44 years to successful coalition governments. Refuting any notions of a wholesale rejection of Hindu nationalism, he claims the focus should be shifted towards mitigating unemployment and inflation, especially in rural areas. Moreover, he supports infrastructure investments which he deems instrumental in lifting rural areas out of poverty. Click here to watch the video

Date: 29th May 2024 | Publication: Ausbiz The global emerging market landscape is undeniably shifting with the focus on India, a view shared by Kenneth Andrade of Old Bridge Capital Management. The largest democratic election in the world and a pull of about $2.9 billion out of Indian markets by foreign investors are among the occurrences underlining this focus. Kenneth says that the attractive valuation arbitrage between India and the rest of the world, particularly with Indian CAGR topping 30% annually since 2020, is a draw for investors. However, foreign portfolio investors booking profits stand as a contrast to local investors who contribute to markets monthly. Kenneth brings up the issue of policy continuity in light of concerns about upcoming elections. Interestingly, he notes that since the mid-nineties, there has been policy continuity irrespective of the party in power, with a consistent focus on outdoing past governors. This continuity, as well as an evolved populace since the late 90s, bodes well for the market’s future. Click Here To Watch The Video

Date: 15th May 2023 | Publication: Ausbiz Corporate winners from India’s election Mugunthan Siva, Co- founder of India Avenue, provides his overview of Indian politics and the unfolding impact of Narendra Modi’s majority in the lower house. According to Mugunthan, the party’s high expectations and the lacking presence of the opposition party have resulted in a strengthened grip for Modi’s government. The much-anticipated election results on 4th June may support Modi’s continuous efforts to enhance infrastructure, digitisation, and productivity. Mugunthan reflects on the reforms initiated by the Modi government to escalate productivity and diverse forms of growth. He emphasises on the importance of reaching a wider population, rather than being constrained to only India’s mega cities. Infrastructural growth – manifested in improved access to mobile phones, the internet, and banking services for a significant section of the population – exemplifies this broad-based progress. Mugunthan then turns his attention to the corporate landscape of India. He discusses the gradual shift of earnings from unstructured sources to organised corporate structures. This transformation, he believes, is favourable for India’s earnings growth Click Here To Watch The Video

Date: 27th November 2023 | Publication: Ausbiz India’s lower cost base advantage U.S. manufactured goods fell more than expected in October as orders for cars and parts dropped amid strikes by vehicle manufacturing workers. This combined with a slowdown in CapEx investment suggesting to economists that underlying momentum in the US economy is beginning to fade. U.S. consumers’ inflation expectations over the next year rose for a second straight month in November to 4.5%, despite signs of slowing price increases. And jobless claims fell more than expected last week dropping to a seasonally adjusted 209 thousand, the lowest level in more than a month. The jobless data helped a rebound in Treasury yields as the futures market lowered the likelihood of a rate cut by early next year. a Reuters poll forecasts most key global stock indices to rise modestly over the coming year, closing 2024 below record highs. The pan-European benchmark STOXX 600 index is forecast to rise around 4%. While Japan’s Nikkei 225 and India’s BSE index are both expected to continue their strong performance into the next year with the Nikkei expected to reach a three-decade high of 35,000 by June of next year and the BSE forecast to hit new highs in 2024. To discuss that outlook and the status of Corporate India, Mugunthan Siva, MD of India Avenue Investment Management, points to debt to equity levels at an all-time low and potential for market dominance in the global economy. He explores India’s stance in comparison to other emerging markets, such as Bangladesh, Vietnam, and Indonesia. He says India’s edge could lie in its blend of both a growing consumer market and low-cost manufacturing hubs as a rapidly growing population fuels a booming economy through increasing consumption and penetration of digitisation. Click Here To Watch The Video

Date: 24th November 2023 | Publication: Ausbiz India Market Reflecting Earnings Growth Washington’s legislative paralysis has been resolved with the U.S. House of Representatives electing Republican Mike Johnson, a conservative with little leadership experience, as speaker. Democratic President Joe Biden’s $106 billion spending request for aid to Israel, Ukraine and U.S. border security has been stalled in the absence of a speaker. The U.S. dollar rose to a near 1-week high against most major currencies as investors’ appetite for riskier currencies faded. The Canadian dollar weakened after the Bank of Canada held its key lending rate at 5.0%, as expected, and forecast weak growth while maintaining its option more rate hikes to tame inflation. India’s market has done well and investors continually question India’s valuations given it trades at a premium to other Emerging Markets, particularly China and other regions. Mugunthan Siva, MD of India Avenue Investment Management, examines the robust valuation at the index level. He connects this progress to India’s earnings growth, currently at a notable 15% rate this decade, in tandem with a potent recovery after the pandemic. The growth drivers, according to Mugunthan, are enhanced productivity, augmented infrastructure, and escalated private capex, marking a shift from the reliance on consumption and finance seen in the previous decade. He shares an optimistic view on investments in India, in line with predictions from India’s Central Bank for substantial GDP growth, likely between 6.3 and 6.5% in the following year. Even with recent challenges faced by Indian banks, Mugunthan observes improved net interest margins and credit growth, while risk-taking is being reduced. He further highlights the success of notable companies like Tata Motors, attributing it to the fast-paced growth in India’s EV penetration. He concludes with the forecast of an ongoing transformation in India’s economy, driven by major infrastructure projects. Click Here To Watch The Video

Date: 24th November 2023 | Publication: Ausbiz How to Invest in India in 2024 Kenneth Andrade of Old Bridge Capital Management offers his insights into the Indian economy, along with prospects for the India 2030 fund. Kenneth observes the Indian economy’s ability to maintain steady interest rates despite global inflation trends, resulting in a positive parity with the rest of the world. Further, he hints at signs of economic maturity due to the nation’s cost of capital and its per capita income growth. Kenneth also talks about India’s growth potential, particularly in the services sector, ranging from engineering and IT to pharmaceuticals and R&D. Despite comparison with China’s manufacturing prowess, he believes India’s strength lies in dominating global services. Click Here To Watch The Video

Date: 31st May 2023 | Publication: Ausbiz The three sectors to invest in India Mugunthan Siva from India Avenue Investment Management says the relationship between India and Australia continues to deepen as evidenced by Prime Minister Modi’s visit last week. Mugunthan highlights Australia’s overreliance on China and suggests that India could become an obvious choice for diversifying trading partners. Education is a key aspect, and with India gradually opening its doors on the migration front, it hopes to connect with the Indian diaspora in Australia. India aims to diversify its interests in other countries, including Australia, for energy and steel. Despite unfamiliarity with Indian companies, Siva points out that India’s equity market is growing and shows strong growth potential, attracting more investments and increasing its weight in various indices. Siva argues that India’s economy is strong despite global economic issues, and Indian companies are expanding their capabilities in sectors like pharmaceutical manufacturing, infrastructure development, and information technology. Click Here To Watch The Video

Date: 13th Apr 2023 | Publication: Ausbiz India’s investment opportunities India is benefitting from supply chain diversity due to the need for governments and corporates globally to diversify their reliance on China. That’s the view  of Mugunthan Siva, Managing Director of India Avenue Investment Management, who has just returned from  tour of India. Mugunthan says compounded with India’s large employable population, an increase in manufacturing, exports and consumption is expected. Mugunthan underscores the significance of India’s shifting demographics, as an escalating number of working-age individuals propel the nation’s growth. India’s strategy involves concentrating on local manufacturing, decreasing dependence on imports, participating more in the global supply chain, and enhancing infrastructure through government capital expenditures. Mugunthan also identifies opportunities for foreign investment, such as Apple’s expansion into India and Indian businesses acquiring companies overseas. The country’s ongoing digitisation is projected to have positive effects on the economy, driven by increased internet penetration rates and the growing adoption of smartphones. Furthermore, Mugunthan says political stability is expected to remain solid, with the BJP party under Narendra Modi’s leadership likely to continue in power after the 2024 elections. Click Here To Watch The Video

Date: 16th Mar 2023 | Publication: Ausbiz Investment strategy India Avenue Investment Management’s Mugunthan Siva discusses opportunities for Australian investors in India, returning from a recent month-long tour with business leaders armed with information on what he saw, what was said and what closer bilateral relations between the two nations could bring down the line. He looks at the burgeoning education opportunity along with processes to improve crop yields to help feed India’s 1.4 billion population. With young demographics and massive workforce, investors could potentially win big where our cricketers could not. Mugunthan also looks at the impact the global financial sector turmoil could mean for India, including it’s large domestically-orientated banks. Click Here To Watch The Video

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