Latest news with #DivyaPatil
Bloomberg
25-05-2025
- Business
- Bloomberg
Record India Private Credit Deal Hinges on Tricky Collateral
By , Saikat Das, and Divya Patil Save On the surface, India's record-breaking private credit deal is a milestone for the market. The real estate and construction conglomerate Shapoorji Pallonji Group has signed a $3.4 billion private financing, the largest ever in India. Investors are being rewarded with a 19.75% yield, an attractive loan-to-value ratio, and a rare opportunity to put a large amount of capital to work in one of the world's hottest markets.
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Business Standard
28-04-2025
- Business
- Business Standard
No 'investible ideas'? DSP Mutual Fund raises cash amid pricey valuations
By Divya Patil and Ashutosh Joshi Pricey valuations and fading hopes of robust earnings growth are leaving India's equity market short of investible ideas for a money manager at a top-performing fund. The dicey environment has pushed Abhishek Singh, who oversees over $2 billion of assets at DSP Mutual Fund, to increase cash holdings in a large cap fund to nearly 13 per cent as of March-end, from about 5 per cent a year ago. Investors need to temper return expectations despite a recent rally in the stock market, Singh said in an interview at his Mumbai office. The nation's slowing economy and global volatility are adding to his cautious view. India was the first major stock market to recover from the selloff caused by US tariff announcement. Optimism that the nation is relatively insulated from global trade tensions boosted the appeal of local assets before they slumped Friday amid concerns over rising tensions with neighboring Pakistan. The worldwide turmoil is raising the odds of weaker earnings growth for Indian companies, especially export-oriented sectors such as information technology. MSCI India Index firms are expected to report a 6.6 per cent rise in 2025 profits, sharply lower than the estimate of 13 per cent at the start of year, according to Bloomberg Intelligence. That means earnings growth in India will be slower than in China and South Korea. Singh has steadily trimmed equity holdings in favor of bonds in his DSP Aggressive Hybrid Fund where debt allocations have increased to about 31 per cent, the highest in at least three years. The 18.4 per cent return in the stock-debt fund in the past year has topped the market and outpaced the benchmark's 9.7 per cent gain. His large cap fund, known as DSP Top 100 Equity Fund, returned investors 19.3 per cent in the past three years, the second best in the industry, according to the Association of Mutual Funds in India. Amid the pessimism in most sectors, Singh is backing financial services firms, with over 25 per cent of his fund's equity holdings in stocks like HDFC Bank Ltd. and ICICI Bank Ltd. Singh recommends investors to stagger their investments as both the fund manager and the asset allocator run the risk of a 'whipsaw' due to the global uncertainties. 'We should not be too aggressive at this point in time.'
