After the boom, investors are becoming wary of crowded India trades. india business news
in a stellar rally indian equity This has made them a favorite of investors and they have faced headwinds that outweigh the high valuations.
A decline in earnings, the attractiveness of rival markets amid expectations of a dovish policy shift by the Federal Reserve and an early recovery in Chinese equities are casting doubt on extending India’s rally, with the country’s key gauges forecast to rise further in 2023 for the eighth consecutive year. Record gain has been achieved. ,
Citigroup Inc and Societe Generale SA have downgraded India, while foreigners have sold $3.8 billion worth of local shares so far this year, the most in emerging Asia outside China. multi property investors Equity bonds in South Asian countries are favoring rupee bonds, and some say money flows from China could slow as the country steps up its market rescue efforts.
“India is the long-term best case scenario, but we are taking a slight advantage because of the high valuations,” said Sean Taylor, chief investment officer at Matthews Asia. “I would look for further Fed cuts in India on a relative basis because I need to put more capital into places like Korea and Taiwan.”
Despite short-term profit-losses, the long-term outlook for India remains intact due to the country’s rapid economic growth, growing middle class and rising manufacturing capacity.
“Even though there are valuation concerns, India is in a good position,” said Juhee An, chief investment officer at Mirae Asset Global Investments Co. in Hong Kong. “We are looking at India from a long-term perspective compared to other emerging markets.”
Still, already stretched valuations, weak consumer demand in parts of the $3.4 trillion economy and a still-hawkish central bank have put some investors on the backfoot, adding to the earnings decline in the latest earnings season. . ,
Indian shares remain close to their most expensive levels against battered Chinese peers as Xi Jinping’s administration unveils measures to prop up markets and boost confidence. This may lead some investors to reconsider their asset allocation across the sector.
s & P bse sensex The index is valued at 20 times its 12-month forward consensus earnings estimate, higher than its 10-year average and the most expensive in Asia. China’s mainland benchmark CSI 300 index, which hit a five-year low earlier this month, trades at a little more than 10 times future earnings.
“We are undervaluing the country because we are value investors and we are struggling in this market,” said Vicky Chi, a Hong Kong-based portfolio manager at Robeco. “We love dirt cheap, but there’s hardly any in India.”
A decline in earnings, the attractiveness of rival markets amid expectations of a dovish policy shift by the Federal Reserve and an early recovery in Chinese equities are casting doubt on extending India’s rally, with the country’s key gauges forecast to rise further in 2023 for the eighth consecutive year. Record gain has been achieved. ,
Citigroup Inc and Societe Generale SA have downgraded India, while foreigners have sold $3.8 billion worth of local shares so far this year, the most in emerging Asia outside China. multi property investors Equity bonds in South Asian countries are favoring rupee bonds, and some say money flows from China could slow as the country steps up its market rescue efforts.
“India is the long-term best case scenario, but we are taking a slight advantage because of the high valuations,” said Sean Taylor, chief investment officer at Matthews Asia. “I would look for further Fed cuts in India on a relative basis because I need to put more capital into places like Korea and Taiwan.”
Despite short-term profit-losses, the long-term outlook for India remains intact due to the country’s rapid economic growth, growing middle class and rising manufacturing capacity.
“Even though there are valuation concerns, India is in a good position,” said Juhee An, chief investment officer at Mirae Asset Global Investments Co. in Hong Kong. “We are looking at India from a long-term perspective compared to other emerging markets.”
Still, already stretched valuations, weak consumer demand in parts of the $3.4 trillion economy and a still-hawkish central bank have put some investors on the backfoot, adding to the earnings decline in the latest earnings season. . ,
Indian shares remain close to their most expensive levels against battered Chinese peers as Xi Jinping’s administration unveils measures to prop up markets and boost confidence. This may lead some investors to reconsider their asset allocation across the sector.
s & P bse sensex The index is valued at 20 times its 12-month forward consensus earnings estimate, higher than its 10-year average and the most expensive in Asia. China’s mainland benchmark CSI 300 index, which hit a five-year low earlier this month, trades at a little more than 10 times future earnings.
“We are undervaluing the country because we are value investors and we are struggling in this market,” said Vicky Chi, a Hong Kong-based portfolio manager at Robeco. “We love dirt cheap, but there’s hardly any in India.”
