Foreign investors to stay cautious as India’s market valuations remain high: Punita Kumar Sinha
«And if you look at the expectation and the probabilities of further rate cuts in the US, there is only an expectation of another 25 basis points cut in the next six months,» says Punita Kumar Sinha, Pacific Paradigm Advisors.
A very interesting point that you made there that a couple of these MNCs now are actually looking to delist in some of the other geographies and make way for the India entry. But this particular year has been quite robust in terms of the new IPOs entering into the markets and the new companies entering into the Indian markets. But what I wanted to know is that what is keeping FIIs back from investing in coming ahead and putting the money in the Indian markets? And what can actually be changed in the overall environment to get these FIIs back into the Indian markets? What is your take on that?
Punita Kumar Sinha: Well, as I said, the perception was or has been created across the world is that India is an expensive market and the valuations in India are much higher than the rest of the world, which has kept some of the foreign investors a little bit on the sidelines.
And then, of course, China valuations were much lower than the stimulus in China. And if you see now over the last six months, as I mentioned, China has outperformed India and several other emerging markets have also outperformed India and if you look across the world, there are many countries where the valuations are a lot lower and so that is where the focus has been.
But we also need to keep in mind that the risks are more to
