Long-term story intact: Analysts
Analysts remain unperturbed by the sharp correction in the stock market, which was triggered by global weakness, reports Arun Kumar.business Updated: Jul 28, 2007 03:54 IST
Unperturbed by the sharp correction in the stock market, which was triggered by global weakness, analysts feel that India's long-term story remains intact.
"India is a 20-year story and over the next three years the market will remain robust," said Hemant Kothari, chairman and managing director of DSP Merrill Lynch. However, since India could not afford to remain isolated from global developments, investors needed to be more watchful, he cautioned.
The market trend is a function of underlying value, expected growth and current valuation, said R Sreeshankar, chief investment officer with ILFS Investmart. "If the Indian economy continues to grow at 8 per cent plus and corporate India continues to outperform, the stock market should remain robust," he added.
Analysts feel the strong fund flow from domestic institutional as well as retail investors and overseas institutional investors continue to drive the market, particularly sectors like power, infrastructure and construction. Hemant Majithia of Ventura Securities, a leading retail securities broking firm, said the fund flow into the Indian equity market remains strong. In fact, foreign institutional investors (FIIs) have invested $10.5 billion since January in the primary and secondary market. This reflected the appetite for Indian assets, he added.
First Published: Jul 28, 2007 03:45 IST