Dec. 14 (Bloomberg) -- Sunil Singhania, head of equities at Reliance Capital Asset Management Ltd., comments on the outlook for Indian equities. He spoke in a panel discussion broadcast on Bloomberg UTV today.
Reliance Mutual Fund had 906.6 billion rupees ($17 billion) in assets at the end of September, according to Bloomberg data.
“We are in challenging times, there is no doubt about it and one thing that is different this time is that you can’t see a solution to it. The confidence that money would be made in the Indian equity markets in the next three months doesn’t seem to be there.”
The Sensex has slumped 22 percent this year on concern a weak rupee and record interest-rate increases by the central bank will compound the effects of Europe’s debt crisis on local company earnings. The measure rose for a second day in Mumbai, gaining 0.1 percent to 16,023.01 at 2:03 p.m. local time.
On foreign inflows:
“Unless growth comes back, there is no reason for a global investors to look at India.”
Foreign funds have cut holdings of Indian shares by $2.4 billion from a record $104.4 billion in July.
Flows from abroad reached a record $29.4 billion in 2010 as the nation’s economic growth lured investors, lifting the Sensex 17 percent and making it the best performer among the world’s 10 biggest markets.
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