subject: Inflows into India would be good despite soaring LNG & crude prices [print this page] Inflows into India would be good despite soaring LNG & crude prices
The radioactivity levels in the nation of earth quake stricken Japan has been a cause of concern for the oil prices as well. This situation is going to be a key factor in raising oil and coal prices in the and around the globe. Crude oil and coking coal prices are likely increase which will directly affect the Indian economy as well. Besides, Germany has already shut down its atomic power reactors, which are producing 7,400 megawatt of electricity. A deficit in power supply will have to be met by coal and LNG-based capacities, resulting in higher imports of coal, LNG and petroleum products, as a report by Crisil.
Despite the mounting pessimism Emkay Global Financial Services Ltd is bullish on India. At a time when negative newsflows have raised the level of skepticism among analysts in the India Growth story, Emkay made a strong case for India at an investor meet.
According to Krishna Kumar Karwa, Managing Director of Emkay Global Financial Services Ltd, long term investment inflow into India would be robust in the backdrop of overwhelming response from prospective investors. Although he ruled out any large short term investment inflow. In a two-day CONFLUENCE, an investor meet organized in UK, representatives of 15 Indian Corporate houses spent two days holding 180 meetings to show-case the potential of investing in India. They further divulged the growth prospects of India and benefits of investing in such a surging economy. This meet was attended by a large number of investment bankers and corporate heads. "We are inherently optimists and from investors point of view, this is the right time to invest in India. If you are not investing in equities, I think you will miss big time opportunities in a growing economy like India," Karwa told the investors.
Karwa's views on India are echoed by Rakesh Jhunjhunwala of Rare Enterprises and Madhu Kela of Reliance Capital who believes that 2011 may not be a year of excellent results because of rising inflation and other global issues in the middle east and libya and then Japan, but it would be a year of stock picking ie a golden opportunity for selecting sound stocks,which if missed would prove to be expensivefor all investors.
