Mr Jean Christophe Gougeon MD for South East Asia of BNP Paribas Personal Investor said that the capital markets are not unduly overvalued because valuations are backed by good economic growth prospects. He added that growth between six and seven per cent would justify the current valuations.
Mr Gougeon said that India, China and Indonesia are emerging as the major investment destinations in Asia. Relatively, India is below China in valuations. He added that greater stability and faster economic recovery is attracting a large number of global funds to Indian markets.
Addressing a press conference Mr CJ George MD of Geojit BNP Paribas said that unlike the last time these are quality investments and not confined to hedge funds and investments through participatory notes. With growth shifting to Asian markets, especially India and China, the investments into Indian capital markets are expected to continue.
Reflecting the surge in foreign capital investments into the country, the recently started joint venture, BNP Paribas Securities India Ltd is accounting for 15% of the revenue of Geojit BNP Paribas.
The business of BNP Paribas Securities which offers a platform for FIIs to invest into the Indian capital markets is expected to grow rapidly in the coming months.
Another high growth area identified by Mr Geojit is the marketing of the trading and settlement platform which has been developed by Geojit Technologies. Currently, the company is customising the platform for BNP Paribas operations to suit the demands of the European markets.
The platform is also being installed in the UAE, Saudi Arabia and Oman markets.
(Sourced from http://www.steelguru.com/news/index/2009/10/20/MTE2Njc5/Macroeconomic_indicators_-_Valuations_justified_by_economic_stability.html)
Monday, October 19, 2009
Macroeconomic indicators - Valuations justified by economic stability
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