Goldman Sachs Group says that after the end of Loksabha Elections in India, more foreign money can be poured into the stock market. According to Bloomberg, Sunil Kaul, Asia Pacific Equity Strategist of Goldman Sachs Group, said in an interview in Singapore that there are some people who are waiting for a while before the elections and once the elections are over, these people will enter the stock market heavily. Will invest money. Due to high valuation of shares, investors are still away from the market. But after earning growth they will be able to invest money.
Global investors withdrew $21 billion in 2023
Global investors have withdrawn $21 billion from the market on a net basis in 2023. But the pace has slowed down a bit before the April-May elections. Prime Minister Narendra Modi is expected to win the elections for the third time. But due to uncertainty many investors want to stay in cash.
Kaul said that if you look at the money pool globally, India is still underweight. With about $2.4 trillion, global mutual funds are underweight India by about 150 basis points.
Investors bet on economic growth prospects
Indian stock benchmarks are trading at record highs. This has been a rise for the eighth consecutive month. Investors are betting on the prospects of increasing economic growth of the country. And they are looking at India as an alternative to China’s market.
Goldman is expecting the policy to remain intact in India after the elections. He is overweight on the market. Kaul said that the market is also hopeful about the expectation of 15% annual earnings growth in the current and next years. NSE Nifty 50 index is trading at about 50% premium compared to the rest of Asia Pacific.
