>INDIA CONTENDERS AND DEFENDERS: Contenders outperform amid macro uncertainty

■ Contenders beat the markets

The India Contenders (-13.7%) struggled last month as equity markets retraced

amid European crisis and weakening rupee, but still managed to outperform the

MSCI India index (-16.0%) by +2.3% and the India Defenders (-23.8%) by +10.0%.

■ Implied Sector Allocation favours Discretionary

Our Implied Sector Allocation model is most overweight Consumer Discretionary

and Health Care, and most underweight Financials, Materials and Industrials.

Last month, the model increased the overweight in Health Care at the expense of

Financials. This sector tilts matches with our new Asia Pac Country-Sector

allocation recommendations.

■ New India Contenders: Hero Motorcorp, Raymond

The new India Contenders are Hero Motorcorp, and Raymond. The longest

standing Contender is Bajaj Auto (16 months). The other India Contenders are

Dish TV India, HDFC Bank, LIC Housing Finance, Petronet LNG, Satyam

Computer, Tata Consultancy Services, and Titan Industries.

■ New India Defenders: JSW Steel, Sesa Goa

The new India Defenders are JSW Steel, and Sesa Goa. The longest standing

Defender is Steel Authority of India (15 months). The other India Defenders are

Crompton Greaves, Hindalco Industries, Housing Development & Infrastructure,

Reliance Communications, Sterlite Industries (India), Tata Motors, and Unitech.

To read the full report: CONTENDERS AND DEFENDERS

RISH TRADER