FII Survey for Investments in India
Large Institutional Investors continue to be bullish on growth and worried about inflation. Buy-side earnings expectations are in line with the sell side. Investors expect modest rate hikes totaling to 50bp for the rest of the year and almost unchanged 10-year bond yields. The Sensex is expected to close the year 10% higher from current levels, although it may hit an intra-year high of around 19,500. About two-thirds of the surveyed investors expect India to continue to outperform emerging markets in 2010 and about half of them are overweight India in their portfolios. (more…)