2200 firms may go MNC way by 2024: PwC

2,200 firms may go MNC way by 2024: PwC


EW DELHI: India may overtake China as the largest source of new MNCs from the emerging markets, with over 2,200 domestic firms forecast to open overseas operations over the next 15 years, says a PricewaterhouseCoopers report.

According to the report titled the Emerging Multinationals, the competitive landscape is set to be transformed over the next decade as Indian and Chinese multinationals lead the way in seeking new markets outside their home markets.

"India is expected to produce the most new multinational companies, overtaking China as the emerging world's largest source of new multinationals. Over 2,200 domestic companies are projected to open operations outside over the next 15 years (between 2010 and 2024)," the report says.

Driven by the rapid pace of globalisation and revolution in information and communications technologies, the number of companies from the emerging markets choosing to set up operations abroad has increased in the past five years.

The report suggests this trend is expected to continue over the next 15 years, as new multinationals from emerging economies rise in prominence on the global economic stage.

Also Read

→ MNC, domestic pharma cos lock horns over patents in India

→ Cairn, BAT ahead of Unilever in most valued MNC in India list

→ People of Indian origin heading MNCs

→ Tamil Nadu looks to lure MNCs with country-specific zones

"It is encouraging to know that India will replace China as the largest source of new MNCs in the emerging world from 2018 onwards. The key drivers for this are the relative increase in both investment intensity as well as openness that the domestic economy offers," PwC India leader for markets and industries Jairaj Purandare said.

India and China would also be joined by an array of companies from Singapore, Russia, Malaysia and South Korea in terms of setting up MNCs.

According to the report, some of these new MNCs would become international powerhouses and would require services all over the world; for example, to support their IT and telecom networks.

PwC report says more and more new MNS are moving straight into the developed economies as opposed to setting up their first foreign operation in a neighbouring emerging market.

The global consultancy major used econometric techniques to project the number of new multinationals arising from a sample of 15 emerging economies over the next 15 years.

The countries analysed are --Argentina, Brazil, Chile, China, Hungary, India, Malaysia, Mexico, Poland, Romania, Russia, Singapore, South Korea, Ukraine and Vietnam.

*************************************

As Greece falters, fears stretch around the world

**************************************
NSE revises lot sizes of F&O scrips w.e.f. Apr 30

NSE revises lot sizes of F&O scrips with effect from April 30, 2010.

SEBI had advised exchange to standardize lot size for derivative contracts on individual securities once in every 6 months as per circular no. SEBI/DNPD/Cir- 50/2010 dated January 8, 2010. In pursuance to the revised methodology mentioned in the SEBI circular, NSE proposed to carry out revision of market lot for derivatives contracts.

For full list of revised lot sizes, click here...

Src: ET and Moneycontrol

Ripple effect on D-St as EU crisis spreads

Ripple effect on D-St as EU crisis spreads


contagion seems to be spreading fast across Europe. Ratings major Standard & Poor’s (S&P) on Wednesday cut its ratings on Spain by one notch to AA from AA-plus.

Earlier in the day, Indian shares joined the worldwide slide in equities and commodities, after S&P had lowered Greece’s debt rating to junk and that of Portugal by two notches on Tuesday.

Brokers and fund managers said the outlook on India’s economy and corporate earnings remained upbeat, notwithstanding the latest upheavals in Europe. But the flow of foreign money into the stock markets could be affected as global investors booked profits in emerging markets like India, to offset losses in other parts of the world, they said.

“The developments in Europe are unlikely to hurt the earnings potential of Indian companies, but investors may question the price-to-earning multiple of (Indian) equities,” said Kenneth Andrade, head-investments, IDFC SSKI Asset Management.

Also Read

→ PE firms take stock, use uptrend to exit

→ Global markets in a tizzy as S&P junks Greece

→ What do equity analysts' recommendations mean?

→ Funds rethink India, China strategy: Morgan Stanley

Indian shares are trading 16-17 times estimated earnings for the current financial year, and most investment managers say they are neither cheap nor too expensive.

BSE’s 30-share Sensex shed 310.54 points, or 1.8%, to close at 17,380.08. The 50-share Nifty crashed 92.90 points to close at 5,215.45. Key markets in Asia ended 1-2% down, and European markets too declined 1-2%.

“While valuations in India are not too stretched, in the immediate term, we remain anxious about the global risk trade unwinding,” said Keshav Sanghi, MD and head of equities, Citigroup Global Markets, India. Bond prices moved up a little and traders expect that the 10-year government paper to be auctioned on Friday will have a yield of below 8%.

Provisional data on the stock exchanges showed foreign funds were not heavy sellers even as many second-line shares fell sharply. Overseas investors net sold Rs 131 crore of shares while domestic institutions bought Rs 324 crore of shares on a net basis. So far in 2010, foreign funds have net bought $6 billion of Indian shares.

Market players expect more volatility on Thursday because of the expiry of derivatives contracts. If the downtrend persists, many traders holding long positions may choose not to carry them forward.

“Emerging markets in Asia have not yet seen a knock-on contagion impact on account of Greece and Portugal and retraced less than Brazil or Mexico today,” Mr Sanghi said. “I believe that there are quite a few macro international variables that still need resolution and the market is in a wait-and-watch mode near term,” Mr Sanghi added.

In the global markets, yields on Greek two-year debt soared to a record 26% and the euro hovered around near a one-year low against the dollar as investors worried that the sovereign debt crisis in parts of Europe may soon spread to markets as well.

Shares of metal, oil and gas, and realty companies were the worst affected, with the respective sectoral indices on BSE falling 2-3%. Shares of FMCG and healthcare companies closed flat to slightly lower, as investors moved a part of their money to defensive stocks.

“The problems of Greece do not have any direct implications for India,” said Vikram Kotak, chief investment officer, Birla Sun Life Insurance.

“But the big worry is a series of bad news—interest rate hike, inflation, high valuations, spate of share offerings—hitting all at once. We see the Sensex moving in a range of 14,000-18,000 over the next few months. But at the moment, a correction appears more likely,” said Mr Kotak.

Top gainers & losers I Q4 Earnings I Top 5 stock picks

Pre Market: Stocks seen subdued; F&O expiry watched

Downward pressure likely to stay in the near term

Great Offshore, Bharti, Indian Hotel, PVR potential investment targets

HDFC board to consider stock-split

Markets may head to 15K level: Shankar Sharma

SJVNL IPO

DLF Limited

Patni Computers

Container Corporation

Manappuram General Finance

Tara Health Foods

SJVNL IPO Analysis

Src: ET and DP blog