Branch2 Intelligence
India's premium has almost entirely disappeared now: Ben Powell, BlackRock
Key takeaway
BlackRock strategist Ben Powell says India's equity risk premium has nearly vanished, suggesting foreign selling is exhausted and earnings forecasts are encouraging.
- Step 11st-order: BlackRock strategist declares India's premium vanished, foreign selling exhausted, earnings encouraging.
- Step 22nd-order: Foreign investors reduce selling and begin buying Indian equities, triggering a re-rating and capital inflows.
- Step 33rd-order: Indian rupee strengthens, cost of capital for Indian firms declines, benefiting UK SMEs with Indian subsidiaries or suppliers.
Source: Economic Times (Markets)
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