Barclays met with a number of investors in Europe and US during our recent marketing trip. Overall, investor interest in India was acceptable, especially on the back of the sharp increase in volatility in Indian equities and currency as well as the fluid policy framework.
The short-term macroeconomic slowdown and the possible return to stability for the rupee led by the central bank’s strong measures appeared well accepted; however, investors said that they were still reluctant to accept our theory of a medium-term (2-3 years) slowdown in asset growth
Investors were surprised to find that most of India’s ROE improvement has been led by easy financing. Low GDP growth appeared to be accepted, but there was still a hesitation to accept its consequences Keen interest in India’s political situation.
IT Services and Healthcare are consensus overweights, Energy slowly gaining traction. Most investors remain overweight financials although we found that this position appeared to be weakening at the margin.
