Home From The Sidelines India a Dedicated Allocation in Investment Portfolios as Upgraded by Foreign Investors

India a Dedicated Allocation in Investment Portfolios as Upgraded by Foreign Investors

According to equity experts, foreign investors have upgraded India as a dedicated allocation in their investment portfolios based on its strong economy, stable government, and significant reforms that have been undertaken within the last eight years. The experts who have participated in the Futures Industry Association (FIA) Asia trade conference that was held recently in Singapore said that investments have been flowing into India’s growth story.

Anant Jatia, Founder & CIO at Greenland Investment Management LLP in Mumbai, said that, previously, investors grouped India into an emerging economy, and China was the only “dedicated allocation” of the emerging market. On the sidelines of the FIA Asia summit, Jatia said that “investment is flowing into India’s growth story.” “We see investments being redirected as FPIs reposition their dollars amidst uncertainties in China.”

The flip is impressive when considering the costs of liquidity that have gone up significantly with the Fed Funds Rate, which is currently at 3.83 percent and is slated to rise an additional 50 basis points this month, as said by Jatia. A Singapore-based stock market expert, Sunil Sachdeva, with a focus on Indian equities, said that Indian stock markets have shown good resilience in recent months and have hit a new trajectory even though some of the leading global markets are down by 15-20 percent because of economic unpredictability.

Sachdeva, who is also the Treasury Director of Safron Pte Ltd, a family office based in Singapore, revealed that this resilience has come from the good regulatory reforms of the government, a good level of domestic consumption, and the RBI’s sharp eye on the economy with supportive policies. He went on to say that Indian markets have entered a new phase, with indices reaching all-time highs. It is the start of a multi-year growth cycle, and it is time to stay. He said that at the FIA event, they have seen a very large interest in India as a market, and everyone wants a piece of the Indian stock market. Domestic and international investors are willing to be part of India’s growth story.

Sachdeva said that funds are flowing through foreign portfolio investors into India. Today, India has over ten crores of dematerialized (demat) accounts. If demat accounts reach 20-30 crores in the next decade, the growth potential is enormous.

The CEO of Noida-based firm Share India, Sachin Gupta, said that the India growth story will continue for the next 10 years as the participation and views of the people are very positive.

According to Priyanka Sachdeva, a market analyst at Singapore’s Phillip Nova Pte Ltd, strong domestic demand and the government are pushing the manufacturing sector in a bid to make India more self-sufficient and working to reduce import reliance, adding to the bullishness of Indian equities against the overall global mayhem.