Mobius doubles down on india as fund exodus seen fleeting – bloomberg risk management system in stock market
The Indian rupee’s longest losing streak since May masks growing confidence among global investors in Prime Minister Narendra Modi’s management of the world’s fastest-growing major economy.
A combination of high yields, improving public finances and room for interest-rate cuts will lure back overseas investors trimming emerging-market debt in the face of global risks such as a potential U.S. Equity risk premium historical data rate increase, according to Franklin Templeton Investment Funds, Mirae Asset Global Investments Co. Historical market risk premium s&p 500 and GAM International Management Ltd. Market risk premium uk Foreign funds are selling Indian shares this month for the first time since February, while their bond holdings have fallen the most since June, as odds of a Federal Reserve
“One of the most exciting things about India is Modi’s reforms,” Mark Mobius, the executive chairman of Templeton Emerging Markets Group, said at a Bloomberg event in Mumbai on Friday. Market risk calculation “India is in a very sweet spot. Market risk management in banks It is our top emerging-market pick at the moment.”
“In times of a low-yield environment globally, the yield-hunting behavior will continue to drive international investors to India,” said Kim Jinha, head of global fixed income at Mirae Asset in Seoul, which manages $83 billion. Market risk factors examples “Its currency has shown much resilience against some of the notable headwinds and has seen limited volatility compared to other emerging-market currencies.”
The currency rose 0.1 percent to 66.8525 per dollar in Mumbai on Monday, after weakening 0.3 percent over the last five days to cap its third straight weekly decline. Risk stock market Its 3.2 percent total return this half is second only to the Indonesian rupiah in Asia and only the yuan is viewed as more stable by options traders. Us market risk premium 2016 At 4.90 percent, the rupee’s one-month implied volatility compares with 4.10 percent for the Chinese yuan and 5.72 percent for the Singapore dollar.
Even so, the impact on Indian assets of events such as Fed raising borrowing costs will be cushioned by the growing pool of domestic capital, Mobius said. Market price risk Local mutual funds have bought $2.8 billion of shares this year, after plowing a record $10.5 billion in 2015, data compiled by Bloomberg show.
“I don’t think it will happen,” he said, referring to the possibility of capital outflows if the U.S. Market risk premium south africa 2016 raises rates. Market risk management “The reason is domestic investors are becoming more important. Market risk capital rule Going forward, they will drive the market, not foreign investors.”
The 10-year yield fell two basis points on Monday to 6.74 percent. Market risk var It plunged to a seven-year low of 6.67 percent on Oct. Market risk premium us 5, the day after India’s monetary policy panel cut the benchmark interest rate to the lowest in more than five years. Risk management system in stock market It still offers 502 basis points more than similar-maturity U.S. Market risk career path Treasuries.
“While there may be knee-jerk reactions to events which may lead to outflows over short term, fundamentally, India stands tall within the emerging-market basket,” said Singapore-based Anand Gupta, who manages about $1 billion in Indian assets at Eastspring Investments Ltd. Market risk career “Sound macro underpinned by an attractive real-rate differential and low external debt will likely lend a cushion to India. Equity risk premium australia 2015 Being the fastest-growing market, it may be difficult to ignore India for a sustained period.”
The recent rise in Brent crude prices has also impacted sentiment for some investors as India imports about three quarters of its oil. Subject to market risk The S&P BSE Sensex, the nation’s benchmark stock gauge, has dropped 3.1 percent since surging to an 18-month high in early September.
“There is some nervousness with regards to U.S. Market risk management ppt rates, but this should be short-lived since India’s yield gap is still very high,” said Nikhil Bhatnagar, the New York-based senior vice president for Asian equities at Auerbach Grayson & Co. Market risk analyst salary singapore “Unless we see oil spike above $80 a barrel, interest in Indian bonds should remain active.” Watch Next: Templeton’s Mark Mobius on Emerging Markets, India