Canada-India tension has not hindered the investors’ sentiment: Ajay Bagga

Ajay Bagga, Chairman of Elyments Platforms

Canadian investors will remain invested in India despite the political turmoil between the two democracies said Ajay Bagga, Chairman of Elyments Platforms, in an interview with Moneycontrol on September 21.

The tensions between the two countries have escalated over the past week after the Canadian Prime Minister Justin Trudeau claimed that the Indian government could be linked to the murder of Khalistani separatist Hardeep Singh Nijjar.

India has dismissed the charge as absurd. These allegations caused a deep freeze on trade talks between India and Canada. However, Canadian investors in Indian markets seem to remain unbothered by these tensions.

Market expert Ajay Bagga highlighted that Canadian institutional investors have put in money keeping in mind the political and market risks. Bagga spoke to two significant Canadian investors in India and he discovered that they remained invested in the country despite the political tensions.

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“This is my personal assessment from conversations with Canadian investor friends who have stated that the impact is too small for us on a Canada-India trade basis to withdraw funds from Indian markets” said Bagga, hoping that this sanity will prevail.

The Canada Pension Plan Investment Board (CPPIB), responsible for investing funds from the Canada Pension Plan (CPP) to generate profits, has made a series of investments in Indian businesses.

Stock-wise, CPPIB holds a 2.68 percent stake in Kotak Mahindra Bank, 2.3 percent in Zomato, 1.47 percent in Nykaa, 2.18 percent in Indus Towers, 1.76 percent in One97 Communications (Paytm) and 6 percent in Delhivery. Most of these have fallen 2-3 percent in the past three trading sessions.

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