Mumbai, March 26 (IANS). Due to the change in its economic trend by the US, emerging markets are expected to rise and India expect the most profit. A report on Wednesday said that the strong flow of foreign institutional investors (FIIs) is returning to India’s markets.
In its ‘India Strategy Report’, MK Global Financial Services said, “There has been a major change in global economic mobility due to the developing fiscal and monetary policies of US administration.
This change will shape investment opportunities, urging investors to move forward in the changing scenario with strategic foresight. “
The report states that as ‘capital’ is getting away from dollars assets, India’s strong economic infrastructure, auxiliary policy environment and attractive evaluation are establishing it as the leading beneficiaries of global capital flow.
India’s markets are expected to continue a rise of 4.5 percent due to strong foreign institutional investors (FII) flows.
The report said that India is in a position to benefit from this global economic scenario. Foreign institutional investors (FIIs) are expected to increase investment in Indian equity due to the decline in weak dollars and US bond yields.
In addition, India remains flexible with strong fiscal and monetary support, making it an attractive investment destination.
MK is expecting a steady boom in Indian markets as ‘global capital’ is shifting to non-dollars assets.
The report stated that “investors are advised to focus on domestic consumption, investment and capital goods sectors, while reducing investment in businesses dependent on US markets.”
Banks and NBFCs are expected to lead a boom.
The improvement in small and mid-cap (SMID) shares seems to end, which indicates the possibility of further acute.
There may be a strong growth in domestic discretionary expenditure and capital investment.
The Trump administration is implementing a strategic change in the economic policy, moving from the “loose fiscal and strict monetary policy” to “strict fiscal and loose monetary policy” structure.
The purpose of this change is to remove the comprehensive economic imbalance and re -establish American dominance in global GDP (24 percent), market capitalization (70 percent) and its reserved currency position.
The report states, “As the US is rebuilding its economic strategy, India stands to attract significant foreign investment, which will benefit from weak dollars and low bond yields.”
-IANS
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