'India is a growth story for the next five years'

Updated on Aug 09, 2007 10:58 PM IST

Indian market is a growth story for next five years and foreign investors are looking at India as a medium term proposition, says Guy Strapp.

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PTI | By, Mumbai

Prudential Asset Management is looking at Indian market as a growth story for next five years.

"Indian market is a growth story for next five years," Prudential Asset Management's Head of Investment Management for Asia, Guy Strapp said on Thursday, while sharing his perspective on the Asian markets with the media.

"Foreign investors were looking at India as a medium term proposition," Strapp said, adding "like China, here medium term story is very competitive and compelling."

Keeping a neutral position on India, Strapp said, "current valuations are not excessive, given growth outlook and value in subsidiaries of listed entities."

Prudential's favoured sectors for investment in India were engineering and construction under the infrastructure theme, while utilities and real estate topped priority on account of urbanisation and increasing wealth, he said.

ICICI Prudential Asset Management's Deputy MD and Chief Investment Officer Nilesh Shah also felt bullish about real estate sector.

"An estimated 40 crore of India's population was going to move from rural and semi-urban centres to semi-urban and urban centres," Shah said, while highlighting the scope of growth in the sector emerging from housing and infrastructural needs for such a large population.

Prudential at the same time remained underweight in the healthcare segment and financial services in the Indian context.

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