Tag: Investments in India

Prashant Khemka expects global investors to prepone India investments

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Prashant Khemka, the Founder of White Oak Capital Management, expects investment dollars to start flowing into India sooner rather than later, due to changes in the political landscape.

Khemka, who manages funds worth over $1.5 billion, told CNBC-TV18 that the perceived risk of electoral surprises has significantly lessened, making India a more attractive investment destination.

“A lot of global investors who were sharpening their pencils and wanted to be ready after the Central Elections, I think, would prepone their decision making to maybe this month or next month as it’s around year-end timeframe,” he said.

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He is particularly keen on private sector financials, including non-banking financial companies (NBFCs) and non-lending companies.

“I think private sector financials always present a very fertile opportunity set for us. Over the years or even over the decades, I would say there has been a favourite hunting ground,” Khemka emphasised. “Capital market intermediaries, which don’t have a balance sheet business but more provide services, those are some fantastic opportunities across the spectrum.”

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However, Khemka sounded a note of caution regarding certain sectors. He advised being careful in power, defense, and railway stocks, citing stretched valuations, particularly in domestic cyclicals and small-caps.

“The deeper the cyclicality, the farther have the stocks gone this time around, and you have to be just cautious,” he said.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India amongst top three choices for future investments, finds survey of MNCs

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India has emerged as one of the top three choices for investments in the next 2-3 years, with more than two-thirds of respondents in a survey of multinational companies (MNCs) citing the country as their number one choice for future investments. According to the FDI survey released on Tuesday by CII in association with EY, about half of the respondents see India amongst the top three economies or leading manufacturing destinations of the world by 2025.

Besides, 25 percent of the respondents, who represent non-Indian headquartered (HQ) MNCs, view India as the first choice for future investments. The respondents cited market potential, skilled workforce and political stability as the top three reasons to make India their favoured destination.

Other key factors which contribute to the attractiveness of India as an investment destination include cheap labour availability, policy reforms, and availability of raw materials. Recent reforms in the country such as corporate tax cuts, ‘Ease of Doing Business’ measures, simplification of labour laws, FDI reforms, and focus on human capital have emerged as the top drivers for fresh investments, CII stated on the survey’s findings.

Non-Indian HQ MNCs opined that major investment in infrastructure and 100 smart cities as well as financial sector reforms will help in establishing India as a favourable destination for FDI, it said. The survey revealed that over 80 percent of the respondents and 71 percent of non-Indian HQ respondents plan to make investments globally in the next 2-3 years.

About 30 percent of companies are planning to invest more than USD 500 million. “The CII-EY survey results strongly indicate that India will be the next global investment hotspot with a high proportion of MNCs placing it at the top of their investment agenda,” CII Director General Chandrajit Banerjee said.

“The recent major structural reforms, proactive government processes and the quick pickup in economic activity following Unlock measures are contributing to global investor interest,” he added. According to the survey, for 40 percent of non-Indian HQ companies, effective implementation of labour laws and FDI reforms are very significant, while 52 percent of Indian HQ companies believe corporate tax rate reduction would be the prime mover of future investments.

Infrastructure development, faster clearances, and proper implementation of improved labour laws and labour availability are the top three issues the companies want the government to focus on, followed by research and development (R&D) and innovation, and tax reforms, as per the survey. In terms of trade policy reforms, investors would like to see a faster turnaround time for exports and imports, improved cargo handling, and trade facilitation measures to be in place.

The survey aims to gauge market sentiment amongst Indian as well as non-Indian MNCs. It assesses India’s competitiveness in terms of key parameters and analyses whether India is likely to be the “+1” jurisdiction for those seeking to relocate investments or making fresh investments.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bain Capital plans to invest $1 billion in India over three years, says report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bain Capital, the US-based private equity investor, is looking to invest around $1 billion in the country in the next three years, reported Livemint. The development reveals the investor’s confidence in the Indian economy despite the ongoing slowdown.

“If you look at over the last seven years, we have invested over $2.5 billion and are one of the biggest investors in the country. There is no reason why we cannot keep investing in India at the same pace … India is one of the most important markets for us … Historically, India has been 20-25 percent of any fund. This is just the Asia fund, we also invest in India from our global fund,” Amit Chandra, managing director and chairman of Bain’s India office was quoted as saying in the report.He added that Bain’s focus on India will be on writing a few large cheques in the range of $500 million to $1 billion.

The development is significant as India, the third-largest economy in Asia, is facing a serious slowdown significantly affecting both credit flow and consumption. This, in turn, has led to international agencies like International Monetary Fund (IMF) and Moody’s cutting down India’s growth projection.

While IMF slashed its economic growth forecast for India to 6.1 percent from earlier 7 percent for the current fiscal, Moody’s Investors Service cut India’s credit ratings outlook to negative.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India tops as Asia’s most investment savvy economy: StanChart

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India is Asia’s most investment savvy economy and more than two-thirds of the country’s affluent class prefer to use various investment products to achieve their financial goals and greater social mobility, says a study.

According to a new Standard Chartered study of 11,000 emerging affluent consumers across Asia, Africa and the Middle East, 68 percent of Indian people belonging to this segment are using investment products to achieve their financial goals, as compared to an average figure of 57 percent.

For the purposes of this study ‘investment products’ refers to fixed income investments, stocks, equities, mutual funds, unit trusts, investment-linked insurance, self-invested pension funds, real estate investment trusts (REITS) and real estate property funds.

As per the study, the number one financial goal for India’s emerging affluents is saving towards their children’s education which is also the top savings priority across the markets in the study.

“It is exciting to see that social mobility is booming among the emerging affluents, and that they are outstripping their parents’ success in education, careers and home ownership,” said Shyamal Saxena, Head – Retail Banking, India, Standard Chartered Bank.

Saxena further noted, “digital financial products are enabling the emerging affluents to achieve their goals, and these tools will be crucial in helping them take their personal financial success to the next level”.

The study said, 31 per cent of emerging affluents is selecting mutual funds, a quarter (25 per cent) choosing fixed income investments and 22 per cent equity investments. All figures are higher than the average in the study, which is 16 per cent, 19 per cent and 18 per cent, respectively.

The Emerging Affluent Study 2018 Climbing the Prosperity Ladder examines the views of emerging affluent consumers individuals who are earning enough to save and invest from 11 markets across Asia, Africa and the Middle East.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow