Modi wins investors’ faith worldwide
Nearly a fourth (23%) percent of respondents in a global poll carried out by Bloomberg said India offers one of the best investment opportunities among eight of the biggest markets worldwide, versus the 12% average for the other so-called BRIC nations, or Brazil, Russia and China – the widest gap since the survey began in 2009.
51% of respondents to the same poll were optimistic on Modi’s policies while those in favor of Brazil President Dilma Rousseff’s sank to a 11% – the lowest they have ever been.
India’s S&P BSE Sensex index surged 21% this year through yesterday on optimism Modi’s pledges to cut red tape and attract investment will boost Asia’s third-largest economy after growth slowed to near a decade low.
Exchange-traded funds that invest in the country lured more inflows than any other emerging market this year, while investors pulled money from Brazil as the economy sunk into stagflation under Ms Rousseff’s watch.
The Sensex slipped less than 0.1% during late morning trading in Hong Kong, while the emerging markets gauge fell 0.5%. Growing optimism toward India is already making stocks more expensive – the Sensex is valued at 15.6 times estimated profit for the next 12 months, within about 3% of the highest level since January 2011, according to data compiled by Bloomberg.
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