Date: 29th May 2024 | Publication: Ausbiz
The global emerging market landscape is undeniably shifting with the focus on India, a view shared by Kenneth Andrade of Old Bridge Capital Management. The largest democratic election in the world and a pull of about $2.9 billion out of Indian markets by foreign investors are among the occurrences underlining this focus. Kenneth says that the attractive valuation arbitrage between India and the rest of the world, particularly with Indian CAGR topping 30% annually since 2020, is a draw for investors. However, foreign portfolio investors booking profits stand as a contrast to local investors who contribute to markets monthly.
Kenneth brings up the issue of policy continuity in light of concerns about upcoming elections. Interestingly, he notes that since the mid-nineties, there has been policy continuity irrespective of the party in power, with a consistent focus on outdoing past governors. This continuity, as well as an evolved populace since the late 90s, bodes well for the market’s future.
