As foreign institutions show renewed faith in Indian equities, pouring over $2 billion in January, many in the market are raising a pertinent question: will the rally last? Fewer factors support the possibility of a repeat of January 2012 in the next few months as share valuations are no longer cheap, the rupee has posted its highest gains ever while concerns over a bloated fiscal deficit and inaction by the government on economic reforms remain. "Foreign funds, which invested in India in January, have already derived the benefit of a beaten-down currency and cheap stock valuations. So, more such flows are unlikely soon," said UR Bhat, managing director, Dalton Capital India.
Source: Economic Times
No comments:
Post a Comment