INSUBCONTINENT EXCLUSIVE:
MUMBAI: Brokerage CLSA said depreciating rupee and rising bond yields are key fundamental worries for investors in India
The brokerage said debt market investors have already turned negative with a $665 million outflow during September after a stable July and
August while foreign outflow in equity is still lower at around $200 million
CLSA said this remains a key worry as, historically, depreciating rupee has driven foreign investors to sell equity as well
The brokerage said worries on rising oil prices can increase further, with the Iranian sanctions to be effective from
4 November
"International demand-supply may become more vulnerable to the supply shocks and oil touching US$90-100/bbl in 1HCY19 cannot be ruled out,
further pressurising the INR," said CLSA
India will continue to be viewed as a safe haven for investors unless concerns surrounding oil prices and Indian politics begin to rise
Political risks are not being factored in as yet but state government elections in December will be important to determine investor
sentiments around politics, said CLSA.
