India: Deservingly Re-rated

Alroy Lobo
Chief Strategist & Global Head - Equities, 
Kotak Group

• India has been deservedly re-rated over the past few weeks.
• Geopolitical risks have receded and there now exists a very strong and stable government in place which is positive for progress and growth.
• India has a strong macro positioning and a solid demand story influenced by domestic factors, powerful demographics, and a sound banking system compared to peers.
• Rural demand to be one of the key growth drivers, Services and Investment to also provide resilience to growth.
• Valuation drivers going forward depend on speed of economic reforms and legislation.
• India has seen $4.5bn foreign investment inflows in the past two months and domestic institutional participation has been on the rise.