News: India, China continue to be hot for investors
(TNN 04/10/2006) Mumbai - If you ask fund managers about Indian equities there is a high probability that at least eight out of ten will find India to be expensive vis-à-vis other emerging markets. If you ask them about their views on Chinese equities, most, if not all of them, (perhaps with the exception of commodity investor Jim Rogers), will bemoan the inadequate corporate governance standards in the country.
As the stock market adage goes, it is not what investors say, but what they do that decides the trend.
Global investors continued to pull money out of most emerging markets for the week ended September 27. However, equity funds that invest in India and China continued to see good inflows, according to Emerging Portfolio Research, a firm that tracks fund flows into emerging markets.
“Investors appear to be seeking more targeted exposure to emerging markets that are best positioned to persevere during slowing global growth and declining commodity prices,” the EPFR note to clients on Monday said.
“As such they contributed a combined $377m of net inflows to China and India equity funds, while handing BRIC (Brazil Russia India China) funds their third consecutive week of net redemptions ,” the note added.
Indian gross domestic product (GDP) for April-June beat all forecasts and grew 8.9%, the highest growth in the first quarter since ’00-01. The numbers, which were announced on Friday , could provide bulls with some ammunition just when it appeared that the market had run out of positive triggers to keep the rally going.
With oil prices cooling and the economy running at full steam, market watchers are hopeful that India Inc’s earnings estimates for the current financial year could see an upgrade.
Softening commodity prices appear to have affected appetite for equity funds investing in Brazil and Russia.
“Investors may be concluding that they don’t like Brazil and Russia exposure that these funds contain after the recent decline in commodity prices. Global emerging markets (GEM), Latin America, posted outflows during the week, while the Asia ex-Japan equity funds took in inflows of $336m,” the note said.
In Asia, the worst affected were equity funds investing in Japan, following the change in prime ministership. These funds witnessed an outflow of $709m during the week, the second biggest weekly outflow in ’06.
“Investors are understandably uncertain about Abe’s intended economic policies, especially following the outgoing reformist prime minister, Junichiro Koizumi, who had solid reformist credentials and helped restore growth to the Japanese economy,” the note said.
Global equity funds — funds that predominantly invest in equities of developed markets — continued to see strong inflows during the week. Investors net pumped $1.3 bn into these funds.
Meanwhile, US equity funds continued to witness outflows for the seventh time in eight weeks, with investors pulling out $1.8 bn out of small cap funds and deploying $559m in large cap funds. The outflow in US equity funds persists despite these funds delivering positive returns in five out of the last eight weeks.
India Bound
Investors contributed a combined $377m of net inflows to China and India equity funds India’s GDP for April-June and grew 8.9%, the highest in the first quarter since ’00-01 Experts are hopeful that India Inc’s earnings estimates for the current fiscal could see an upgrade.
As the stock market adage goes, it is not what investors say, but what they do that decides the trend.
Global investors continued to pull money out of most emerging markets for the week ended September 27. However, equity funds that invest in India and China continued to see good inflows, according to Emerging Portfolio Research, a firm that tracks fund flows into emerging markets.
“Investors appear to be seeking more targeted exposure to emerging markets that are best positioned to persevere during slowing global growth and declining commodity prices,” the EPFR note to clients on Monday said.
“As such they contributed a combined $377m of net inflows to China and India equity funds, while handing BRIC (Brazil Russia India China) funds their third consecutive week of net redemptions ,” the note added.
Indian gross domestic product (GDP) for April-June beat all forecasts and grew 8.9%, the highest growth in the first quarter since ’00-01. The numbers, which were announced on Friday , could provide bulls with some ammunition just when it appeared that the market had run out of positive triggers to keep the rally going.
With oil prices cooling and the economy running at full steam, market watchers are hopeful that India Inc’s earnings estimates for the current financial year could see an upgrade.
Softening commodity prices appear to have affected appetite for equity funds investing in Brazil and Russia.
“Investors may be concluding that they don’t like Brazil and Russia exposure that these funds contain after the recent decline in commodity prices. Global emerging markets (GEM), Latin America, posted outflows during the week, while the Asia ex-Japan equity funds took in inflows of $336m,” the note said.
In Asia, the worst affected were equity funds investing in Japan, following the change in prime ministership. These funds witnessed an outflow of $709m during the week, the second biggest weekly outflow in ’06.
“Investors are understandably uncertain about Abe’s intended economic policies, especially following the outgoing reformist prime minister, Junichiro Koizumi, who had solid reformist credentials and helped restore growth to the Japanese economy,” the note said.
Global equity funds — funds that predominantly invest in equities of developed markets — continued to see strong inflows during the week. Investors net pumped $1.3 bn into these funds.
Meanwhile, US equity funds continued to witness outflows for the seventh time in eight weeks, with investors pulling out $1.8 bn out of small cap funds and deploying $559m in large cap funds. The outflow in US equity funds persists despite these funds delivering positive returns in five out of the last eight weeks.
India Bound
Investors contributed a combined $377m of net inflows to China and India equity funds India’s GDP for April-June and grew 8.9%, the highest in the first quarter since ’00-01 Experts are hopeful that India Inc’s earnings estimates for the current fiscal could see an upgrade.
posted by InCar Group Press Room at 19:31
0 Comments:
Post a Comment
<< Home