Neha Dhamija
Six months ago, the portfolio investors were quite pessimistic about the earning potential of Indian companies but the attitude has shown a favorable change since then.
According to Citi Investment Research’s MD and Research head Aditya Narain, FIIs were concerned about the oil prices in the nation. But now when the rates are coming down, a beneficial variation is expected. He also added that although a fast recovery is not very probable; but the dipping cost of fuels will definitely exert a similar effect on the current account deficit. The magnitude is believed to be less than $10 billion in FY 10.
Narain said that it will take some time for the consequences of global crisis to get vanished completely but policy changes being introduced by the government will pay-off. So, a healthy growth rate is anticipated in FY10.
Talking about Satyam, he opined that the episode has been sinister in every sense, but such things have happened in other countries too. So, bouncing back will occur, for sure. The negative effects will be limited to that stock itself.
Prior to the revealing of fudged accounts, Citi had labeled the stock as ‘buy’. Now when this has come out, it has stopped the coverage of stock.
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