Financial Daily from THE HINDU group of publications
Thursday, Feb 23, 2006
Financial Daily from THE HINDU group of publications Thursday, Feb 23, 2006 |
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Money & Banking
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Foreign Banks Markets - Foreign Institutional Investors `More global investors entering India' Deutsche Bank upbeat Our Bureau
Mumbai , Feb. 22 THERE is more money waiting to come into India, as long term and strategic investors are in the process of entering the market, said Mr Claus Martini, Global Chief Investment Officer, Deutsche Bank Private Clients. The investment bank is advising private banking clients to invest 10-12 per cent in Asia and of that, 3-5 per cent in India. Most of the existing investment in India is in equities. Deutsche Bank had a total of 230 billion euros under advisory services as on November 2005. This may have risen to 250 billion euros now, Mr Martini said. The Indian equity market is getting slightly overheated, he added. "Equity is not cheap here anymore. It is relatively expensive. But it is still exciting because of a few companies. The growth rate of 8 per cent seems sustainable for the next three years." Mr Martini said the price to earning ratio for India is 17, Brazil 9 and China 10. His advice to clients would be to invest in India, but not to put everything in at the same time and go for internationally diversified companies. India's strengths are in consulting and engineering, medical and pharma sectors and the service industry. These have medium to long term potential. Other investment avenues in India are gold, real estate, private equity and commodities. But as of now, there are no structured products in these areas, making investments difficult, Mr Martini said. Gold certificates with a capital guarantee are a good investment option, as India is the largest buyer of gold. The real estate also provides for a good long-term investment but is slightly overvalued now, he said. At the global level, Deutsche Bank is planning to offer structured products in commodities such as sugar, gold and segments like infrastructure. In India, the bank offers hedging techniques within its portfolio management services. It has tied up with four providers and offers 12 schemes.
Related Stories: More Stories on : Foreign Banks | Foreign Institutional Investors
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