For India, infra looks more compelling than energy: Noriko Kuroki, JPMorgan

India is a long-term story and that's exactly what most investors should look at that, says Noriko Kuroki, Client Portfolio Manager, Global Emerging Markets Team, JPMorgan Asset Management, in an interview to ET Now.

Kuroki explains why it makes sense to look at India that way and focus less on firms that are more dependent on external factors.

Kuroki says it is tough to back energy firms whose course is directed by movements in oil prices. "We have less confidence or less conviction in the inability to predict the short-term direction."

"We would focus probably more on structural growth stories. So some of the industrial areas are quite interesting right now because the prospects for India’s infrastructure spending is looking more compelling. For energy, we look for firms with good valuation and visibility in terms of production growth and which are less dependent on the movement in oil prices. Our preference is typically more on structural growth rather than the commodity or energy companies."

Kuroki is of the view that Budget should be seen as a broad package.

"We are long-term investors. We see Budget announcements as more of a milestone for the overall reform agenda from the new government. So rather than focussing on in the detailed specifics, we want to look at the broad package as a milestone."

Kuroki wants to see more action on taxation and infrastructure. "We would like to see a good balance between fiscal consolidation and the spending planning and areas such as tax reform. We would be looking at at how the government stimulate key infrastructure projects. Shifting more from public spending to wider participation from the private sector and easing regulations for foreign investors would be interesting areas to watch out for."