Opinion: This fast-growing country is taming inflation and its stock market is calling
From Dow Jones & Company:
Summary 1: India’s growth potential appears strong due to an infrastructure boom, attractive government policies, economic expansion, and technological innovation. The country has seen political stability over the past 10 years, allowing for encouraging developments in infrastructure and residential housing. Corporate confidence is high, and the economy is expanding at a decent rate, while technology is leading to new growth areas.
Summary 2: A focus on corporate governance is a crucial factor in India’s economic growth. India historically trades at higher valuations despite challenges in corporate governance. Transparency is important to ensure that shareholder interests align with those of management teams. Enhanced governance standards have been seen, but this is a complex issue that requires thorough research and investigation.
Summary 3: The smaller companies, classified as small and mid-cap, dominate the Indian market. These smaller companies could offer potential opportunities, and investors should consider actively managed mutual funds to take advantage of Indian small-caps. India’s equity market also offers a wide breadth of investments in finance, consumer businesses, manufacturing, real estate development, and online technology platforms. The country’s fundamental outlook is positive, making it an attractive market for active portfolio managers.
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