India is likely to surpass up-and-coming markets in 2016, according to a survey conducted by Morgan Stanley. Even as it was predicted that there would be a sizeable weakening of conviction among investors of the country when compared with that in the second half of 2015, media reports suggest.
The American multinational financial services company said that 52 percent of the respondents in the poll projected India to surpass emerging markets this year. On the other hand, 85 percent of the respondents had predicted the same in the previous survey conducted in the second half of 2015.
Apprehension has risen over the current shape of global economy and has set off a risk averse sentiment among global investors. This has induced several of them to withdraw money from riskier assets—including India—and move to gold and developed world bonds.
It is however, important to note that the survey conducted by Morgan Stanley showed a greater part of foreign investors to continue the course of their steadfast hope in India’s growth story. Underpinning this is the fact that the Sensex has climbed up 10 percent since Union finance minister, Arun Jaitley, presented the Budget for 2016-17 on February 29.
Foreign investors have injected nearly Rs 13,000 crore into Indian equities after pulling out nearly Rs 26,200 crore between the months of January and February this year. For the third time in a row, market participants support the claim that earnings growth is a key driver of market performance while all other factors have lost their place.