New Delhi: Investors across the world are waiting to buy Indian equities, but are waiting for a further correction as the country remains a favourite long-term equity market in Asia, foreign brokerage firm CLSA Asia-Pacific Markets has said.
CLSA strategist Christopher Wood said Asian stock indices are not expected to perform as badly as the US indices this year, as these economies dependent a lot on domestic demand which helped come out of the financial turmoil faster, while the US is still in a downturn.
“One of the economies which has displayed that resilience is India...Investors want to buy more in Indian shares but are expecting and hoping for more of a pullback,” Wood wrote in his Greed & Fear report, as most of the shares are still commanding a hefty premium even now.
It can be noted that the benchmark BSE Sensex gave a whopping 81% return last year. The market barometer Sensex has dropped nearly 10% this year after an initial rally early January, and about 12% off its 2009 high in mid-October lat year following rising food inflation and the recurring crises in the global markets.
“India remains a favourite long-term equity market in Asia with the economy’s unique domestic demand focus. It also remains complementary to China in an Asian equity portfolio, because the two investment stories are, in almost every aspect, so completely different from each other,” Wood said.
Last year CLSA predicted that within the next few years the importance of foreign investors in Indian market would be reduced as local players would come into play.