Indian equities’ growth prospects assured

Good news for investors favouring Indian equities.

Despite restrictions in performance over the first quarter of the year, the country's structural growth drivers remain intact and bode well for equities in the medium to long term, says Teera Chanpongsang, Portfolio Manager, Fidelity India Focus Fund.
"Concerns about the impact of inflation and monetary tightening on growth have restricted Indian equity returns so far this year," Ms Chanpongsang comments. "Foreign investors redeemed funds from many emerging markets, including India, to invest in the developed world where economic growth was showing signs of a recovery.  However, this trend seems to have reversed since early March, given the stronger growth and economic fundamentals in emerging markets.  This dynamic has helped Indian equities to make a strong recovery.”

Ms Chanpongsang's optimistic outlook is further backed up by her observation that India is the only large global economy, besides China, that is expected to continue growing by a high single-digit rate this year -  7 to 8% in her estimation.  "My belief is that this superior growth rate will continue to attract investors given a relatively lower growth expectation across many markets."