FPI inflows of $ 18 billion a year
Mumbai, Ta. 24 February 2020, Monday
For foreign institutional investors (FPIs), India is still the center of choice in emerging economies. In the last six months, FPI has invested $ 8 billion in the Indian equity market, the highest in emerging markets.
Sensex is an expensive index in emerging markets. Sensex is 5% more expensive than Indonesia, Brazil, China and Mexico. Sensex is three times more expensive than Russia's index.
There has been a strong inflow of capital, but the country's macroeconomic fundamentals have seen a steady decline. India's economic growth rate has declined significantly in the calendar year of 9 and it has also lost respect for the fast growing economy.
India's economic growth rate will see a gradual improvement in Phase 2, but in comparison, China, Vietnam and Bangladesh will have faster growth rates, according to a report by the International Monetary Fund.
India's exports of goods are shrinking and domestic consumption demand is also declining. As a result of the decline in aggregate demand in the country, employment and corporate earnings will be hit.
India's macroeconomic status is worsening as a result of the increase in the fiscal deficit and the raising of money from the market to meet it. Sensex's earnings per share is expected to grow at a rate of 8.5% in the 5th.
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