Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
India: Growth triggers in place - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Apr 10, 2003

    India: Growth triggers in place

    Now that the war against Iraq is almost over, investors worldwide seem to have shifted their focus on the future. Investor sentiments are clearly reflected in the market volatility witnessed in the recent past. This is primarily due to the concerns over the growth of major developed economies. Under these circumstances where does Indian stand? Considering that India would not be impacted much by these developments, we feel that the performance of the Indian economy will be dictated more by domestic factors. India seems well placed to take on the challenge of registering a reasonable growth in the years to come.

    For one, on the domestic front, the government has been at the forefront of development in the sense that it has started taking steps by pushing for growth in the infrastructure (roads, railway and ports) and housing sectors. Moreover, with the budget focusing on health, education and employment, this could provide a further fillip to development. The government is also trying to speed up the reforms process in sectors like power and banking. These initiatives will go a long way in attracting FDI in to the country.

    Another important factor is the perception of the international investor community towards India as an emerging market. After a volatile FY02, FIIs have again shown some interest towards India. Though the first half of FY03 showed a declining trend in FII investments, the second half did shown a positive trend. FIIs started to show increasing investments post the month of October when India’s MSCI weightages were increased. The increase in the MSCI weightage is a sign of the increasing confidence of FIIs in the Indian economy.

    On the external front too India is witnessing a revival of sorts. India’s exports saw a 17% rise in the 11 months ending February 2003. This is particularly noteworthy when looked from the perspective that Indian rupee has appreciated by over 2% in the same period against the US dollar. Typically, appreciation in rupee would make Indian exports comparatively expensive. However, in spite of this, India has managed to register a growth in exports, which is commendable. The growth in exports of auto components, steel, gem and jewellery, textile items and pharmaceuticals were the key contributors to the growth in exports. However, it must be noted here, that the Indian rupee depreciated against major currencies like the Euro in the same period, which also was positive for exports.

    India’s forex reserves, which stood at close to US$ 75 billion as at the end of FY03 have also added a touch of comfort. This cushion of huge reserves will help the Indian economy face the consequences of a rise in oil prices by providing a cover for imports. Thus, considering India’s position at this current juncture, it seems that Indian investors will look more towards the domestic economy going forward.



    Equitymaster requests your view! Post a comment on "India: Growth triggers in place". Click here!


    More Views on News

    Insider Leaks Equitymaster Stock Picks (The 5 Minute Wrapup)

    Jul 25, 2017

    Equitymaster HQ has been infiltrated. Valuable stock ideas have been leaked. Who's responsible?

    Raymond and Other 'For Profit' Companies Who Don't Care about Shareholder Returns (The 5 Minute Wrapup)

    May 27, 2017

    What happens when minority shareholders are short-changed in the normal course of business?

    Why Commission Driven Model In Mutual Funds Should Be Eliminated... (Outside View)

    Feb 15, 2017

    PersonalFN believes SEBI has taken a step back-apparently in the admission of it going overboard with the regulations.

    This Book Changed How I Looked at the World of Man and Money (Vivek Kaul's Diary)

    Aug 24, 2016

    And here's your chance to claim a free copy of this book...

    The Developed World is Dying because of Demographics, Debt, and Deflation (Vivek Kaul's Diary)

    Aug 12, 2016

    And Why India's demographic dividend could turn out to be a doubtful debt...

    More Views on News

    Most Popular

    This Small Cap Can Drive Chinese Players Out of India (and Make a Fortune in the Process)(The 5 Minute Wrapup)

    Aug 17, 2017

    A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.

    Dear PM Modi, India is Already Land of Self-Employed, and It Ain't Working(Vivek Kaul's Diary)

    Aug 21, 2017

    Most Indians who cannot find jobs, look at becoming self-employed.

    It's the Best Time to Buy IT Stocks(Daily Profit Hunter)

    Aug 16, 2017

    The IT Sector could be in an uptrend till February 2019. Are you prepared to ride the trend?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    Think Twice Before You Keep Money In A Savings Bank Account(Outside View)

    Aug 22, 2017

    Post demonetisation, a cut in bank savings deposits rates was in the offing.

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms