large scale image
LCP Image

Back to TSCFM News

Foreign Investors bet big on Indian Banking on resilience

June 16, 2023

Foreign Investors bet big on Indian Banking on resilience
Most foreign institutional investors from the key US and Europe region have grown optimistic about India, which is reflected in the swinging fortunes of equity flows to the Asian country.
 
According to UBS, more than 50 FIIs have expressed their positive outlook on India, resulting in equity flows recovering to $9.5 billion since March 2023. This rebound comes after a $4 billion outflow from India in the previous three months, amid China’s reopening and negative news regarding certain Indian corporate groups.
 
“India’s sustained economic momentum despite the fading reopening tailwinds was a bit of a surprise. However, most FIIs agreed that on-the ground recovery remains uneven whether looked at in terms of the rural-urban dichotomy, manufacturing versus services growth or affluent versus lower income household demand,” UBS said in a report.
 
Global investors have also largely priced in Prime Minister Modi winning the upcoming parliamentary elections in April/May 2024, while the outcome of state elections in the December 2023 quarter is expected to have limited impact, the bank said.
 
Despite underperforming emerging markets by 4.6% this year, India is still trading at a premium of around 62% on a 12-month forward price-to-earnings (PE) basis, UBS said.
Important Links:

Recommended for you ...

Modi, Mauritius, and Sri Lanka Leaders Unveil Digital Payment Services
Modi, Mauritius, and Sri Lanka Leaders Unveil Digital Payment Services

February 12, 2024

Public Sector Banks Surpassing Private Peers, Investors Reconsidering Choices
Public Sector Banks Surpassing Private Peers, Investors Reconsidering Choices

February 12, 2024

Indian Banks Seek RBI Permission for Global Bond Trading Ahead of Inclusion in Indices
Indian Banks Seek RBI Permission for Global Bond Trading Ahead of Inclusion in Indices

February 12, 2024

Enquire Now
REQUEST A CALLBACK
Chat on WhatsApp