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India structurally positive within EM funds: ICICI Sec

India at the moment has leadership premium and market expected growth premium, Anup Bagchi, MD and CEO of ICICI Securities says. According to him, strong balance sheets are being bought aggressively.

Within emerging markets funds, India stands structurally positive despite the third quarter earnings not being all that good, is the word coming in from Anup Bagchi, MD and CEO of ICICI Securities from the sidelines of the I-Sec India Unlimited annual conference. Any dip is being bought, he says. However, fund flows toward emerging markets is not all that rosy anymore since developed markets are doing rather well, he adds.

India at the moment has a leadership premium and market expected growth premium, he says. According to him, strong balance sheets are being bought aggressively.

But most foreign investors are worried about the quality of the fiscal and hence all eyes are on the Budget. Bagchi believes the government needs to pass reform bills in a proper way and not just bank on ordinances. There is concern on expenditure management by the government – leakages must be fixed. The issue is not so much on the revenue side – about disinvestments, he says.

Another priority for foreign investors is that the government fixes issues related to projects that are stuck due to various clearances. Around 13 percent of GDP is stuck in various projects.

FIIs believe that the FMCG sector is rather expensive and are relooking at IT and pharma sectors. 

Stay tuned for more…

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