Equity market has outperformed emerging market rivals
The chairman of India’s largest investor, Life Insurance Corporation of India (LIC), said on Thursday he saw few red flags ahead, betting on a long-term rally for the country’s stock market under a new pro-business government.
India’s equity market has outperformed emerging market rivals this year, thanks to overseas fund interest fuelled by Prime Minister Narendra Modi, who came to power in May with a pledge to boost growth and revive investment. After months of caution, domestic investors are now also growing more confident. LIC Chairman S. K. Roy said he was “very bullish” about the banking, pharmaceutical, metals and IT outsourcing sectors because of expectations of a cyclical recovery and a stabilising rupee currency.
There are a large number of sectors about which we are very confident this year Roy said in an interview. The state-run life insurer also likes the capital goods sector and is looking develop its existing holding of more than 70 land plots in phases over the next three to five years, either for commercial or residential purposes, Roy added.
Source: The Financial Express
