Foreign investors return as Indian firms show 10%-12% dollar earnings
Foreign investors are getting excited about Indian stocks again, mainly because Indian companies are posting strong earnings, even when measured in dollars.
According to Samir Arora, founder and fund manager at Helios Capital, this steady 10% to 12% growth has helped India bounce back from earlier worries about currency drops.
The recent wave of investment also follows falling oil prices and some tax speculation.
Samir Arora: Earnings sustain India interest
Arora points out that this renewed interest isn't just a passing trend: solid corporate performance is making India stand out globally.
He also mentioned that Indian stocks don't need global tech giants to slow down to do well; their own earnings strength is enough.
In fact, a quick round of hedge fund activity recently was largely short-covering by hedge funds rather than fresh long-term allocations.