Welcome to the spring edition of the Grant Thornton India Watch, in association with the London Stock Exchange.
Each quarter, we track the performance of all Indian companies listed on the London Markets, while also giving an overview of Indian M&A activity and an analysis of the Indian economy.
The Grant Thornton India Watch Index fell by 4.1% in Q1 2017, in stark contrast to its strong performance over the previous 12 months. This drop was driven by a number of poor-performing stocks, including Oilex Ltd and Infrastructure India PLC. The clear winner in the first quarter was Hardy Oil and Gas PLC, which saw its share price increase by 48%.
Big-ticket consolidation in India’s telecom sector helped drive a four-fold year-on-year rise in deal values in Q1. This included the merger of Vodafone and Idea, one of the largest ever deals in India at around $US27 billion. Meanwhile, private equity activity continues to be lacklustre, except in the start-up sector, which shows encouraging signs of life.
Although economic growth in India is predicted to be down this year, a number of planned structural reforms, confirmed in the recent Union Budget, are expected to help raise growth in the medium-term. We look at a number of the key reforms including the Goods and Services Tax and plans to strengthen India’s financial sector.