According Farhan A Mumtaz of Eurekahedge many fund managers have taken aggressive long portfolio positions for India. This long-only money is flowing into India because of attractive P/E valuations in Indian and emerging market companies.
In its hay-day, the India growth story was a money-magnet no one could say no to. But now, it is being questioned by many large institutional investors. And both private equity and long-only funds are looking to offload their core holdings in India. Harish Rao and Ashmit Kumar of CNBC-TV18 have a report.
Emil Wolter of RBS sees market volatile in the near-term due to confusing macro economic dynamics in India. "This has seen the market starting and stopping quite a bit." While he still holds a cautious call, he sees a significant correction in the Indian markets in the next couple of months.
In an interview with CNBC-TV18, Paul Sheard, global chief economist and Prabhat Awasthi, head of India equity research & managing director from Nomura said that the emerging markets like India will continue to perform well. They think that the developed economies are still facing strong headwinds.