Speaking to CNBC-TV18 Jan Dehn of Ashmore said though the execution of demonetisation hasn‘t been as smooth as expected, this is a temporary aberration. “The Indian economy will come out of it without any lasting damage and come out in a stronger place; the underlying fundamentals will remain solid.â€
But a growing number are now arguing that the supposed weakness -- largely fueled by fears of slower Chinese growth -- is overblown and recent market declines are more of a buying opportunity than a reason to sell.
Jan Dehn Head-Research, Ashmore Investment Management is not perturbed by the intense sell-off in Indian equities. The Indian story is far from over, he tells CNBC-TV18 adding incremental government spending can add 10 percent to indices in one year.
"There is considerable value in India particularly, if we also see resumption in reforms after the elections. That is a low hanging fruit in India that investors should take a closer look at," Jan Dehn of Ashmore said.
Jan Dehn, co-head research, Ashmore Investment Management, feels that a deal on fiscal cliff will be reached by January. He is of the view that both the Democrats and the Republicans have too much to lose if they don‘t find an agreement.
Most investors are going negative on India more so after rating agency S&P expressed concerns about fiscal deficit and growing economic problems. However, Jerome Booth of Ashmore Investment holds a very different opinion and thinks India shouldn‘t be paying too much attention to rating agencies.