India's Stock Market Poses Attractive Investment Opportunities Post-Correction
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Key Takeaways
Mumbai, March 19 (NationPress) The recent corrections in India’s stock market have rendered it a highly appealing destination for foreign investors, as indicated by a senior official from the market regulator. This presents new opportunities for global investors, particularly those from Russia.
According to Kamlesh Chandra Varshney, a whole-time member of the Securities and Exchange Board of India, the current valuations in the Indian equity market appear “quite attractive” after a decline observed in recent months.
“The correction, driven by global volatility and the ongoing conflict in West Asia, has created a robust investment opportunity for foreign portfolio investors (FPIs),” he remarked.
During his speech at a Russia-India Forum event at the National Stock Exchange of India, Varshney emphasized that there exists a “tremendous opportunity” for investing in Indian equities at this juncture. He noted that benchmark indices have dropped by over 8 percent this month, which has affected investor sentiment but also improved entry valuations.
“The regulator is diligently working to clarify procedures and address technical issues to facilitate easier investments from Russian FPIs in India,” he added.
Currently, there are 23 Russian entities, including banks and financial institutions, registered as FPIs in India, enabling them to invest in both equity and debt markets.
Varshney also pointed out that Russian firms can establish subsidiaries in India and raise capital through initial public offerings (IPOs).
He highlighted that, in certain instances, subsidiaries listed in India have surpassed their parent companies overseas in terms of valuations, making India an attractive location for fundraising.
“SEBI is collaborating with market participants to create technology-driven solutions that will streamline access to Indian markets for investors, thereby broadening participation,” Varshney stated.
At the same event, NSE’s chief business development officer, Sriram Krishnan, suggested that Russian companies might explore listing opportunities at GIFT City in Gujarat, and also consider establishing operations in this financial hub.