Salomon Smith Barney Launches Equity Research

Salomon Smith and Barney (SSB) today launched its equity research wing to be headed by Ratnesh Kumar, director, head of the country research, India.

SSB, a member of Citigroup, also kicked off its Indian operations today. It will trade on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The equity research wing of SSB will cover 85 to 90 per cent of the total market capitalisation of the top 100 companies listed on the BSE and NSE.

William Mills, chief executive officer, Asia, Australia and New Zealand, Salomon Smith Barney in Asia, said: "We are excited about this. The Asia-Pacific market is as big as Europe, Japan and America."

The nine-member research team will focus on key sectors in the new economy with global technology, engineering and locomotive, Internet media, software and pharmaceuticals. It will also focus on sectors in the old economy like steel, oil and gas, petroleum and banking.

Each of the nine members have an average of five-and-half years of research experience in India. It will deliver, to its clients, the breadth and depth required for the clients' stock coverage. This structure is intended to serve both corporate finance and investor clients.

Ratnesh Kumar, who heads this venture, said: "We are taking a cautious approach due to globally rising interest rates and decelerating growth rates. Despite this, the growth rates in India are encouraging. We don't think that the interest rates are about start declining any time soon."

"We are working on possible strategies for turbulent markets like India. We think that the local (retail) flows are underrated in the stock markets," he added.