$ 4.3 trillion stock market could present an opportunity
BBN Bureau
Mumbai: JP Morgan predicts a surge of foreign investment into the country’s stock market following the general elections.
The American investment bank is optimistic about India’s economic growth prospects and anticipates that the Federal Reserve’s interest rate cuts will further bolster market conditions, serving as a catalyst for Indian bourses.
According to media reprots the bank is of the view that any potential correction in the country’s $4.3 trillion stock market could present an opportunity for investors to expand their holdings.
JP Morgan’s outlook comes amidst heightened volatility in foreign fund flows ahead of national elections and concerns over the stretched valuations of Indian stocks.
Foreign investors, who have maintained a relatively stagnant position in the Indian markets over the past couple of years, are awaiting the conclusion of the elections and expect to see more growth-oriented policies and reforms.
“Foreign investors who have refrained from increasing their exposure to India over the last 2-2.5 years, awaiting clarity post-elections, will refocus on growth-oriented policies and reforms,” commented Batra, an Asia strategist at JPMorgan, in an email interview.
Goldman Sachs Group Inc., another prominent American investment bank, shares a similar sentiment, citing widespread expectations of Prime Minister Narendra Modi securing a third term.
