New Delhi: Deutsche Bank held its India meet in the Capital which was attended by over 150 global investors. Head of Deutsche Equities Keshav Sanghi says that medium-term foreign investors are still positive on India.
Deutsche Equities believes that the FII mood on India is the same as that on other Asian emerging markets. It says, most of the FIIs are from the US and many are looking at India for the first time.
Deutsche Equities opines that we may see the GDP slow-down by about 1%. It is felt that India is less risky in the wake of Yen Carry Trade unwinding, says Sanghi. He adds that FIIs are concerned with reference to high interest rates and lower export growth.
Q: How would you sum up sentiment right now in terms of investing in emerging markets?
A: It is a lot better now. You have seen the entire Asian region bounce a little bit, and India has opened stronger as well. It is definitely a lot better right now. I don’t think the mood in India is any different than the mood in the rest of the Asian emerging markets.
This is just the reflection of the fact that you have so many FIIs now investing in India. The way they see it, India is like any other market out there and they are pulling money out of Asian emerging markets; India will see some pain as well.
Beyond that, they are pretty confident on India’s medium to long-term growth potential. You are seeing a width of industry and clear visibility on some growth. Only some of the shorter-term investors are panicking. But the long and medium term investors are fine and they are more focused on the fact that you have a width of industry with clear visible growth, which should be okay.
Q: What regions are these investors coming from and how many of them are first time India investors?
A: A lot of them are first time Indian investors. About 25 per cent of the investors are the funds that are based here. But most of them are coming out of the US, there are a few out of Asia and Europe as well and this is a healthy mix of the hedge funds and long institutional money as well.
For a lot of them experiencing India for the first time, it is important for them to get a width of exposure. They are seeing companies from every sector - from cement and engineering, to metal companies, to tech companies, to a wide spectrum of companies.
If you ask most of them, they tell you the same thing. They are very impressed with the quality of management in India, they are very impressed with managements communicating their vision on growth to the investors.
They have all come from leading companies in Taiwan, Korea and many other places in Asia and they always go back impressed with the quality of Indian corporates and managements. So it is a broad spectrum of clients and leading a broad spectrum of companies as well and I think they go back very happy. It peaks their curiosity enough to come back and do a more in-depth analysis.
Info source: moneycontrol.com
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