Quote on Morgan Stanley Upgrades India`s Rating to Overweight and Downgrades China - Implications for India and China by Dr. V K Vijayakumar, Geojit Financial Services
Below the view on Morgan Stanley Upgrades India's Rating to Overweight and Downgrades China - Implications for India and China from Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
There is a high probability that India will be the fastest growing large economy in the world for many years to come. India’s demographic dividend, entrepreneurial talent, macro stability and vibrant democratic system can drive sustained high growth and consequent impressive corporate earnings. This near consensus is already baked into market valuations in India which are high compared to peers.
In contrast to the rosey outlook for the Indian economy, China’s growth prospects appear bleak. Declining population, crisis in the property market, high debt-GDP ratio and very high youth unemployment are serious headwinds for China.
In this scenario India is likely to attract more FPI flows than any other emerging market. Even though Indian market valuations are high in the short-term, for long-term investors, valuations are fair.
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