FIIs looking at India as a stable invst destination

FIIs looking at India as a stable invst destination post UPA win; govt must privatise, divest some PSUs, allow FDI in some sectors; 10-15% earnings growth seen if govt delivers on reforms: The Blackstone Grp

Punita Kumar Sinha, Sr MD-Asia Advisory Grp-Boston at The Blackstone Group said that the FIIs are looking at India as a stable investment destination post UPA win. India’s valuations may be at premium as against the regional markets for a while.

She further said that the budget should reassure the markets and there is an urgent need to address the fiscal deficit. She feels that Government must privatise, and divest some PSUs, and allow FDI in some sectors.

The markets have made a short-term bottom and sustainable reforms are needed for long-term. She sees signs of a trough but is not sure if US, Europe are out of woods. There may be over 10-15% earnings growth seen if the government delivers on reforms, she added.

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