Although a correction is inevitable in the India market, it is the best long-term story in the Asia Pacific region, according to Jonathan Schiessl, who manages the Ashburton Asia Pacific Fund.
He said: “We sought an answer to whether all the good news is already priced into a stock market that has risen by 150% since the shock election result in early 2004? From a good short-term perspective, the stock market by its own historical standards is looking expensive. Add to this, a background of rising interest rates and slower growth in corporate profits, although from very high levels, it is not generally a recipe for further short-term gains. However, the market continues its ascent upwards, propelled by both domestic and global liquidity.
“Most investors we spoke to in Mumbai were nervous of a market fall, which from a positive perspective is not usually a sign of a market top. So we believe in the short-term the Sensex will probably head higher, climbing the wall of worry. However, with such an extended market, any sign of a reduction in liquidity and rise in risk aversion among global investors will probably be the time to reduce positions to India.
'Exact timescale' of complaints not yet provided
1,400 reviews of adviser technology
To engage next generation
Now accessible to all
Some scheme’s ‘fib’