Investment is flowing into India's growth story

Singapore: Foreign investors have upgraded India as a dedicated allocation in their investment portfolios given the strong economy, stable government and significant reforms undertaken over the last eight years, equity experts have said. According to the experts, who participated in Futures Industry Association (FIA) Asia trade conference held in Singapore from November 29 to December 1, investment is flowing into India's growth story.

Previously, the investors had grouped India within emerging markets and comparatively only China was a 'dedicated allocation' emerging market, according to Anant Jatia, Founder & CIO at Greenland Investment Management LLP in Mumbai. "Investment is flowing into India's Growth Story. We see investments being redirected as FPIs reposition their dollars amidst uncertainties in China," Jatia told PTI on the sidelines of FIA Asia 2022. "We are seeing the current pickup gaining momentum as FPIs have turned net buyers of India with over $5 billion coming in over November and early December relative to the $23 billion they pulled out over the first ten months of 2022," Jatia added.

He said that the flip is impressive considering the cost of liquidity has gone up significantly with the Fed Funds Rate, currently at 3.83 per cent, slated to rise an additional 50 basis months this month. Sunil Sachdeva, a Singapore-based stock market expert with focus on Indian equities, said that the Indian stock markets have shown good resilience in recent months, and hit a new growth trajectory though some of the leading global markets are down by 15-20 per cent due to the economic uncertainties. "This resilience has come from good Government regulatory reforms, RBI's sharp eye on the economy with supportive policies and a good level of domestic consumption," Sachdeva, who is also the Treasury Director of Safron Pte Ltd, a family office based in Singapore, said.