For India’s most accurate equity forecaster, the best monsoon since 2007 is a reason to be bullish on the country’s stocks for a third successive year.
Rakesh Arora, the head of research at Macquarie Group Ltd. in Mumbai, says the benchmark S&P BSE Sensex will advance 13 percent in 2014. The average of eight analysts’ predictions compiled by Bloomberg is for a 9.5 percent gain. It has climbed 9.1 percent this year after rising 26 percent in 2012.
Indian equities have beaten stocks in Brazil, Russia and China in 2013 as the economy of the world’s second-most populous country rebounded from the slowest growth in four years. Monsoon rains that are a boost to farmers are adding to a recovery in investor confidence fueled by a jump in exports, speculation next year’s national elections will usher in a more stable government and a halt to interest-rate increases.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.