Over View Of Birla Power Solutions Company Marketing Essay

Over View Of Birla Power Solutions Company Marketing Essay

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The Indian markets are still trading at a P/E of close to 26. This is higher than the mean P/E the Indian markets have traded in the last 10 years. Also, the Indian markets have gone up over 100% from its March 2009 lows. After such a steep rise, a correction of even 20-25% can't be ruled out. This would be healthy for the markets in terms of attractive more money as valuations again start looking fair.

China has been making efforts to control the credit growth as there is a high probability of asset bubbles and runaway inflation in China. Chinese property market is already in a bubble stage. Therefore, there is a high probability of aggressive policy action to control credit growth and this can slow down China's growth significantly. Any such event will trigger a sharp sell off by the FII's in the emerging markets. Hence, the Indian economy might do well and the stock markets may dive in either direction

There is no doubt that the Indian economy is coming back to a robust growth trajectory, even though inflation is also becoming a greater concern. The food inflation has shown no signs of easing and the Wholesale Price Index inflation is also going up at an alarming pace. It would not be surprising to see further action by the RBI relatively soon. This might negatively trigger the markets. 

Indian economy needs matching improvements in the infra-segment. Power sector will play important role in the economic development and hence need focused attention. But due to economic slowdown India's electrical equipment YOY in 2008-09 is down to 8.57 % from 14.6 % of the previous financial year (2007-08). However, India posted a positive growth compared with global growth where the growth has been negative a fall of 2.2 % in 2008 compared to 2007

India has taken number of legislative and policy initiatives to expedite power sector development such as RGGVY. All these initiatives provide loads of investment opportunities to Foreign Institutional Investors

The power sector reforms if implemented as scheduled will create large business for power sector equipment manufacturers and service providers. In India electrical sector export in the past 3 years (2004-05 to 2007-08) has grown with much higher CAGR of 57.28 percent compared to 32.25 percent for the period of 1995-96 to 2007-08. We can expect a continuous handsome growth for this sector for at least next five years and it is expected to cross INR 400 Billion by 2013.