This year has been a bad one for the Indian stock market, which performed among the world's worst. Inflation continues to rage, there are signs of slowing economic growth and bribery allegations against companies are surfacing with alarming regularity, taking their toll on the companies' shares.
- Noah Seelam/Agence France-Presse/Getty Images
- Food inflation in the week to May 28 accelerated to 9.01% from 8.55% in the previous week.
But some analysts are starting to say the gloom-and-doom scenario is overstated and that there's actually money to be made in India’s stock market.
At an investment seminar in Mumbai last week, Morgan Stanley's head of India equity research Ridham Desai told CNBC TV-18 that Indian shares fitted his "3U" criteria. They are under-owned, under-loved and have under-performed — a great combination to make money.
At its own investment seminar in Mumbai on Wednesday, Citigroup cited beaten-down economic growth expectations, elevated risk perceptions and the resultant moderation in stock valuations as reasons to buy Indian stocks.
India’s 30-share benchmark Sensex has fallen 10.4% in 2011 so far, not nearly in the same league as the strife-torn Egypt’s 24% tumble, but the worst among major financial markets. Even tsunami-hit Japan has done better, with the Nikkei index having shed 7.4% this year.
Recently, trading volume for the Sensex has tumbled as cagey investors are choosing to sit out of the market, according to ma [...]
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