At least 70 percent of North American investors see India as the most attractive market to invest in, among BRIC (Brazil, Russia, India and China) nations, a survey by JP Morgan shows. The remaining 30 percent rank India second to China, the study shows.
India, like most emerging markets, is facing headwinds from the Greek crisis, which, some believe, poses contagion risks for some developing markets. India’s benchmark 30-share index, the Sensex, fell on Monday, in line with a fall across Asian markets, but recovered from intra-day lows as fears of a collapse across Europe eased. On Tuesday, the Sensex ended up 135.68 points, or 0.49 percent, at 27,780.83, on reports that the contagion from a possible Greek exit would be limited. Further, local research firms widely believe India will ride out of this global worry.
China garners the highest share (47 percent) of BRIC investments, followed by India at 24 percent. Brazil (23 percent) and Russia (6 percent) fall next in line. The survey was based on responses from 30 investment professionals from some of the largest North American fund houses, through which investments into Indian companies are made. These investors usually buy into the Indian companies through American Depository Receipts (ADRs) listed overseas or trade in ordinary shares through global funds. The survey was carried out between December last year and January 2015.
“The prospects of long-term economic growth, favourable demographics, BJP’s reform agenda, numerous investment opportunities and a democratic legal system have been cited as the most attractive factors for investing in India,” Vikas Taimni, emerging markets (depository receipts) head, JP Morgan said in the report.