Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (4158)	4/29/1999 9:39:00 AM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

Merrill Lynch Bullish on India. Merrill Lynch bullish on India; Asia-Pacific managing director lists country among top 5 favourites Rajas Kelkar in Mumbai The cassandras may be forecasting troubled times for India, but foreign institutional investors remain believers — for now. One of the foremost bulls is James Leighton, managing director, Merrill Lynch Asset Management, Asia Pacific, who lists India among the top five markets for investment in Asia. Leighton believes that India is a cyclical market and offers good investment opportunities for overseas investors. He lists South Korea, Hong Kong, Singapore and Thailand as his other favourite markets. Speaking to Business Standard, Leighton said the average Indian investor is looking for a consistent return on investment. According to a survey conducted by DSP Merrill Lynch prior to the launch of its balanced fund, nine out of 10 Indians preferred investment in fixed income securities. Leighton also discussed a range of issues affecting investor sentiment in Asia and India. Excerpts: The rally on Asian bourses: The rally witnessed in Asia is a combination of two factors. Firstly, valuation of assets in these markets is attractive at current levels. Secondly, they have reformed significantly to merit a higher allocation from portfolio investors. The crisis last year has forced them to open up their capital markets as investors have become more demanding. However, a return of 100 per cent in three months cannot be sustained throughout. Investments in India India was insulated from the Asian crisis due to restrictions imposed on currency flow. The cyclical market in India offers good investment opportunities. Our India offshore fund has been one of the top performers. Political uncertainty is a key factor affecting the investor sentiment about India. However, from the long term investors perspective, we believe that foreign investors have discounted the political events in the country. We are focussing on companies that have good governance. The performance of our domestic equity fund is a good example. There is a need for better disclosures on behalf of corporates so that the investor is apprised of various developments. We look at companies which come forward with information more than that specified by regulations. business-standard.com