India remains an attractive market from the medium to long-term perspective despite the Adani-Hindenburg row and China reopening, said Jonathan Schiessl, Deputy CIO, Westminster Asset Management, in an interview with ET Now.
"India has received a bit of bad press and it has sort of come from this whole Adani affair but underlying India remains a very attractive market with good companies with very attractive growth rates coming through for the foreseeable future," Schiessl told ET Now.
"The China reopening has perhaps in the short term encouraged some short-term money to flow out of India into other emerging markets, particularly China," he added.
Schiessl said the issues like Adani saga happen in all equity markets where investors invest in companies with very large promoter holdings.
"It is not just India, there are many markets where one is investing in companies where you have a promoter with a very large holding. It is essential that you understand who as minority shareholders are investing in these companies and try and understand the behaviour of these promoters," Schiessl said.
Earlier in a separate interview with ET Now, Mark Mobius, Partner, Mobius Capital Partners, said that despite recent volatility, the Indian market is still very strong and remains attractive in the long run.
"If you look at it on a five-year basis, the Indian market is still very strong and is still staying up. At the end of the day, it will do well," Mobius said in an interview with ET Now.
Mobius said he stayed away from the Adani Enterprises' FPO because of the huge debt on the Adani Group.
India is one of the few economies that has seen a robust recovery after the Covid-19 slump, and it is currently in better shape than its global peers.
Analysts are optimistic about India, claiming that even if the major economies are headed to recession, the impact on the country will be modest due to its strong macroeconomic fundamentals.
Disclaimer: This article is based on an ET Now interview. The views and recommendations given in this article are those of the analyst. These do not represent the views of MintGenie.
