Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now

You can switch off notifications anytime using browser settings.


Stock Analysis, IPO, Mutual Funds, Bonds & More

Stocks to make a comeback as banking crisis passes, AMP says

AMP Capital is sticking to its bullish stance despite the market’s recent rout.

Oct 09, 2019, 10.44 AM IST
stocks up getty
By Abhishek Vishnoi

India’s stocks will make a comeback as the economic benefits of a landmark corporate-tax cut prevail against concerns over a shadow banking crisis, according to AMP Capital Investors.

“Shadow banking incidents are unlikely to derail the positive backdrop for India equities following the tax cuts,” said Nader Naeimi, who oversees more than $1 billion in assets at AMP Capital. “Indian firms have now become a lot more competitive, which will attract a lot of investors, even those that had valuation concerns.”

Naeimi’s funds went from having no exposure to Indian stocks to boosting it to 5 per cent of assets after Narendra Modi delivered a Donald Trump-styled cut in corporate taxes on Sept. 20. He is looking to buy more.


AMP Capital is sticking to its bullish stance despite the market’s recent rout. The benchmark S&P BSE Sensex Index has given up almost half of the surge it saw after the tax cut, as bad-loan concerns emerged at lenders including Indiabulls Housing Finance and a cooperative bank.

Naeimi expects the Sensex index to rise by more than 20 per cent in the next two years. The gauge dropped 0.4 per cent to 37,531.98 on Tuesday, sliding for a sixth day.

“The tax cut has put Indian stocks on the path of a multi-year bullish phase,” the fund manager said.

Also Read

Is India's current banking crisis just old wine in a new bottle?

PMC Bank crisis 'eye opener', RBI looking into lapses: Anurag Thakur

PMC Bank crisis: HDIL says loans taken after giving 'adequate security' cover

Shadow banking crisis raises risk of Indian bad-loan redux

Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links

Follow us on

Download et app

Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service