A sharp sell-off in India’s equity market, hit by increasingly bearish sentiment towards emerging markets generally, now provides an opportunity to snap up shares in Asia’s third largest economy, some analysts say.
Indian stocks have plunged around 6 percent over the past few trading sessions, knocked down by a fall in the rupee to new record lows against the dollar and as foreign investors continue to ditch risky emerging-market assets amid fears of the U.S. Federal Reserve unwinding its monetary stimulus.
Many commentators such as Templeton Emerging Market Group’s Mark Mobius say they would stay well away from Indian assets right now.
But some, such as Steve Brice, chief investment strategist at Standard Chartered bank, said Indian equities look attractive from a technical standpoint.
“We like India. That’s where you could make the strongest case for a bounce because we have weakened so far and so fast,” said Brice.
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