FIIs find India bright spot among emerging market peers
There is a sense of disappointment because this government had come to power with a lot of expectation, says Raamdeo Agrawal.
By Partha Sinha, TNN | Updated:
MUMBAI: A select band of influential global fund managers that includes the likes of Fidelity, T Rowe Price, Janus Capital, GIC and Capital International feel that while India is a bright spot among all emerging markets (EMs), the recent slide in the sensex and the nifty was mainly because the country is being grouped with other EM peers.
The majority view among a group of about 40 FIIs (foreign institutional investors) was that India would witness strong foreign fund inflows once the current global volatility subsides. About 120 FII fund managers, along with 140 of their domestic counterparts and top officials from about 120 listed companies, were in the city recently for a three-day investor conference organized by Motilal Oswal Financial Services.
“Most FII fund managers feel that the current (Narendra Modi-led) government is much better than the previous one. However, at the same time, there is a sense of disappointment because this government had come to power with a lot of expectation,“ Raamdeo Agrawal, joint MD, Motilal Oswal Financial Services, said.
For India, however, the situation is that the country is bracketed along with other EMs, some of which have weak economic fundamentals when compared to India's. “So, when fund managers receive redemption requests from emerging market funds, along with stocks from other emerging markets, they have to sell Indian stocks also, although it remains the bright spot among all EMs,“ Agrawal said. “They are very positive on India, but helpless. Most of their calls are based on emerging market and global macros,“ he said.
FII fund managers also take greater comfort from RBI governor Raghuram Rajan's policy decisions. They “feel that in India, the RBI chief is being pulled up for not cutting rates. But they feel people should at first compliment Rajan for doing something unthinkable in this volatile global market scenario, that of keeping an emerging market currency stable", Agrawal said.
The majority view among a group of about 40 FIIs (foreign institutional investors) was that India would witness strong foreign fund inflows once the current global volatility subsides. About 120 FII fund managers, along with 140 of their domestic counterparts and top officials from about 120 listed companies, were in the city recently for a three-day investor conference organized by Motilal Oswal Financial Services.
“Most FII fund managers feel that the current (Narendra Modi-led) government is much better than the previous one. However, at the same time, there is a sense of disappointment because this government had come to power with a lot of expectation,“ Raamdeo Agrawal, joint MD, Motilal Oswal Financial Services, said.
For India, however, the situation is that the country is bracketed along with other EMs, some of which have weak economic fundamentals when compared to India's. “So, when fund managers receive redemption requests from emerging market funds, along with stocks from other emerging markets, they have to sell Indian stocks also, although it remains the bright spot among all EMs,“ Agrawal said. “They are very positive on India, but helpless. Most of their calls are based on emerging market and global macros,“ he said.
FII fund managers also take greater comfort from RBI governor Raghuram Rajan's policy decisions. They “feel that in India, the RBI chief is being pulled up for not cutting rates. But they feel people should at first compliment Rajan for doing something unthinkable in this volatile global market scenario, that of keeping an emerging market currency stable", Agrawal said.
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