Indian equities to perform well in the second half of the current year

Mumbai: Asian stock markets will continue to struggle in the last six months of the current year, while Indian stock markets will perform well. Economic recovery is being seen strongly in India. A report by a Singapore-based research firm has said that India’s economic growth rate is expected to be 7 percent in the current […]
 


Indian equities to perform well in the second half of the current year

Mumbai: Asian stock markets will continue to struggle in the last six months of the current year, while Indian stock markets will perform well. Economic recovery is being seen strongly in India. A report by a Singapore-based research firm has said that India’s economic growth rate is expected to be 7 percent in the current year, indicating a strong economy.

The Indian economy is currently the fastest growing among the major economies of the world. In the first 6 months of 2022, $30 billion has been withdrawn by foreign institutional investors, but similar inflows have been seen by domestic institutional investors.

The sentiment among domestic investors in India is strong, which reaffirms the confidence in its economy. For the first time since 2010, the stake of foreign institutional investors in the top 75 companies of the country has come down below 25 per cent.

In contrast, the combined exposure of domestic institutional investors, fund houses and individual investors in these 75 companies is more than 25 per cent.

The report also noted that retail investors in India have increased their interest in equities over the past two years. The growth of startups has also made the situation more favorable.

Equities are highly liquid assets in any fast-growing country, and provide inflation-adjusted returns, and therefore we consider equities to be one of the fastest growing assets in India, the report said. As India becomes an important part of the global economy, investors are demanding easier access to the Indian bond market, the report also said.