Market experts on what to expect from various sectors in 2014 _ Business Today

The gradual eas ing of tens ions between us and iran

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Unformatted text preview: or the global oil and gas indus try. The gradual eas ing of tens ions between US and Iran m ay lead to norm alis ation of flow of c rude oil from the wes t As ian ypr int/201839 6/18 1/2/14 M ar ket exper ts on what to expect fr om var ious sector s in 2014 : Business Today c ountry. Im provem ent in s upplies from Lybia and Iraq m ay als o eas e pres s ure on global oil pric es . However, pic k-up in growth in US, Europe and China m ay lead to inc reas e in dem and. Thus , c rude oil pric es are expec ted to hover between $95 and $112 in 2014. There has been a s ea c hange in the global natural gas bus ines s over the las t c ouple of years . This trend is expec ted to c ontinue in 2014. W ith dis c overy of new s hale gas res erves and s tabilis ation of s hale gas produc tion in the older bloc ks , the US is now m eeting a large part of its energy requirem ent through loc al produc tion. This has depres s ed natural gas pric es . However, s inc e logis tic s of natural gas trans portation ac ros s c ontinents c ontinues to rem ain a c hallenge, pric es differ s ignific antly in various parts of the globe. In the long run, it is expec ted that fres h dis c overies ac ros s the world will bring down pric es . However, globally, we expec t pric es to rem ain firm during the firs t four m onths of 2014 due to high dem and during the winter s eas on. From the Indian c apital m arket pers pec tive, we like Cairn India, BPCL and HPCL. W e believe that thes e c om panies are very s trong and have the potential to provide hands om e returns to inves tors over the next c ouple of years . In c as e of BPCL and HPCL, the s truc tural problem c reated due to the s ubs idy burden is expec ted to eas e over the next 6-12 m onths . CONSUM ER DURABLES ypr int/201839 7/18 1/2/14 M ar ket exper ts on what to expect fr om var ious sector s in 2014 : Business Today "Fridge, was hing m ac hine, m ic rowav e ov en firm s offer inv es tm ent opportunities " VK Vijay ak um ar, Inv es tm ent Strategis t, Geojit BNP Paribas Financ ial The c ons um er durables indus try does well when the ec onom y grows . This is m ore s o in an em erging c ountry s uc h as India where ac c es s to c ons um er durables is s till very lim ited. During the boom years from 2004 to 2011, fas t ec onom ic growth, whic h led to a s pike in dis c retionary inc om e, ens ured that the indus try did s pec tac ularly well. But s inc e 2011, with growth s lowing and high inflation eating into hous ehold s avings , the indus try has been fac ing rough weather. Ris ing interes t rates and im port c os ts due to rupee deprec iation have added to the indus try's woes . Segm ents like s m art phones and tablets are growing at a fas t pac e, but do not offer any inves tm ent opportunity, as thes e are dom inated by unlis ted MNCs . In the LED TV s egm ent, c heap im ports are pos ing a problem . However, refrigerator, was hing m ac hine and m ic rowave oven c om panies off...
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This document was uploaded on 02/06/2014.

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