India has survived the worst, according to CEO
According to HDFC Asset Management Co Chief Investment Officer Prahsant Jain, the country have surpassed the most turbulent of times in terms of capital outflows as the rupee stabilizes. The head of the largest money manager in India said the increasing volume of exports also helped boost corporate earnings.
Overseas funds have bought in USD2.1 billion worth in domestic shares for the month of September. This is the first net inflow since May, which was the month RBI Governor Raghuram Rajan announced the central bank's plans to boost the value of the currency. Another factor would be the policy of maintaining the US Federal Reserve's its stimulus program. These inflows have helped the rupee rebound 10% from its record low INR68.845 to the US dollar last month. The S&P BSE Sensex had jumped to 10% near its lowest for a year by Aug.21.
Jain said, "The worst of the economic pressures are behind us and in six months to a year from today we should be in a much better situation." Jain's firm currently manages USD17 billion, who made the remarks during an interview with Bloomberg TV India.