Investors of Indian market are not a happy lot as it crashed 24% in 2011. The new year too does not begin on a very happy note and experts still see India in a danger zone.
In an interview to CNBC-TV18, Marc Faber, editor and publisher, The Gloom, Boom & Doom Report warned that the Sensex may bottom out between 12000-15000 levels. Expecting further weakness in the emerging markets in the initial part of 2012, he is not so positive on India.
Faber is looking at an entry into India in the next six to nine months. There is some bit of a good news for foreign investors interested in Indian market. The government will now allow individual foreign investors direct access to its stock market from January 15.
Foreign fund inflows, a major driver of Indian stocks, dried up with net outflows of about USD 380 million as of Wednesday, a far cry from record inflows of more than USD 29 billion in 2010 that had powered a 17% rise in the benchmark index, following an 81% surge in 2009. Below is an edited transcript. Watch the accompanying video for more. Q: What are the expectations you would have of 2012 from equity markets given how bad last year was for equities worldwide?
A: We have to clarify the statement about how bad it was for equities worldwide because the US market was flat and it significantly outperformed most other markets in the world in particular emerging economies stock markets. This resembles the underperformance we had in 2008 that made the major buying opportunity. What we will have in 2012 is initially maybe some maybe further weakness in emerging economies against the US market and then a major low in emerging stock markets, including, India. I was looking for India to bottom out the Sensex between 12,000 and 15,000 and we are getting there slowly. Q: It
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