J.P. Morgan Asset Management – ValueNotes Investment Confidence Index, Wave VII

Indian investors turn cautious

 
Apr 2011:

The 7th wave of the J.P. Morgan Asset Management – ValueNotes Investment Confidence Index (ICI) in India shows that the Indian financial community’s faith in the Indian economic story could be weakening and they have turned cautious. This has driven the ICI downhill to an all time low, recording the biggest fall in the history of this Index. For the very first time the confidence in India’s economic growth has broken out of the 147-154 range to end at 136.1, denoting a cautious outlook.

 

The confidence has dropped across the board among retail investors, corporates and advisors and concerns over the investment market environment and atmosphere has led to this fall. The ICI stands at 132.3 in March 2011, indicating a 14-point or 9.5% decline from the ICI in December 2010.

 

Key findings include –

     

  • Confidence of India Inc (123.5) hits a new low this quarter. Besides, India Inc has been the most sceptical through the year.
  • The Indian GDP continues to provide a beacon of hope. All three categories, retail (25%), corporates (46%) and advisors (26%), continue to vote for GDP growth as the most positive economic indicator
  • Money market mutual funds are the most preferred debt instrument among 86% of corporate treasuries this quarter compared to 67% in December 2010.

 

To download a complimentary copy of the presentation, please follow this link

 

To read about the findings of the other waves of the Investment Confidence Index, follow the links below:

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