vishnuvega
26-12-2007, 05:47 AM
A majority of India’s equity fund managers are likely to raise equity exposure — at the year’s highest in November-end — as they expect the multi-year bull run to continue in the first quarter of 2008, a poll showed. India’s diversified equity funds held 93.01% of their assets in stocks in November-end and half of the 10 fund firms that took part in the Reuters Asset Allocation Poll during December 20-21 said they would further cut cash in favour of equities.
“We will be nearer to 26 to 28 (26,000 to 28,000 levels for India's benchmark index) rather than nearer to 20 (20,000) at this time next year,” Ajay Bagga, chief executive officer of Lotus India Asset Management, said. Bagga, who expects foreign institutional investors to bring over $10 billion in 2008, said an upsurge in infrastructure and public spending in view of the 2009 general elections would push the stock markets up 20-40% next year.
India's benchmark BSE index has risen about 39% as on Decem-ber 21 this year with shares in consumer goods, metal and oil and gas sectors leading the upsurge. Technology, auto and healthcare stocks have lagged this year but may see interest in at least the first quarter of 2008.
“We will be nearer to 26 to 28 (26,000 to 28,000 levels for India's benchmark index) rather than nearer to 20 (20,000) at this time next year,” Ajay Bagga, chief executive officer of Lotus India Asset Management, said. Bagga, who expects foreign institutional investors to bring over $10 billion in 2008, said an upsurge in infrastructure and public spending in view of the 2009 general elections would push the stock markets up 20-40% next year.
India's benchmark BSE index has risen about 39% as on Decem-ber 21 this year with shares in consumer goods, metal and oil and gas sectors leading the upsurge. Technology, auto and healthcare stocks have lagged this year but may see interest in at least the first quarter of 2008.