Fast improving domestic demand and strong signs of economic recovery have helped push up investors sentiment in the country, a survey said on Wednesday.
Reflecting the rising investor confidence, the India Investor Sentiment Index rose to 174 in the first quarter of 2010 from 169 in the fourth quarter of 2009 in line with the improvement in the domestic demand, the survey prepared by the global financial services major ING said.
"Strong domestic consumption and positive economic outlook have driven the India investor sentiment to highest level in Asia," said ING Investment Management India managing director and chief executive officer Navin Suri, while releasing the survey.
According to the survey, a whopping 91 per cent of investors in the country expect the economic situation to improve over the next quarter. It also shows a marked improvement in the pessimism related to inflation among the domestic investors.
Signalling the continued confidence in the domestic economy, risk appetite among domestic investors has also increased over the past few months, Suri said, adding, "the confidence showed by investors in the country is based on domestic consumption and their anticipation of the return to robust economic growth."
Given that the global economy has stabilised, investors are recommended to look into consumer, capital goods, construction and infrastructure sectors to capitalise on the domestic growth prospect, Suri said.
In line with the growing optimism, 76 per cent of domestic investors believe that their personal financial situation improved during the first quarter of this year and nearly 83 per cent believe that the local stock market will rise an average of 9.66 per cent in the second quarter of 2010.