The Indian regulatory body, SEBI, has proposed the implementation of measures to monitor the investment by Foreign Investment Instruments through Offshore Derivative Instruments.
Fidelity India focus fund manager Arun Mehra says this is good news for long-term investors as it should make the market less speculative.
He says: “India is a ten year story not a two year story. There are a number of drivers behind the growth, all of which are long term in nature. India is changing and new themes are emerging all the time. For example, huge gas and oil fields have been found recently on the east coast which will have an impact on the rupee and imports. Lifestyles are changing, more people are using the internet and thinking about healthcare. Property development is also increasing.
“The Indian market has enjoyed a sustained period of growth with periods of short corrections. I believe that over the next 10 years the market will continue to behave this way. India as an asset class is here to stay. The drivers of growth and trends in the market are both diversified and long term. With new trends emerging all the time, I believe India is a good long term story for investors.”