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

Inflation – India’s biggest confidence killer in India

Jul 2010:

The 4th wave of the J.P. Morgan Asset Management – ValueNotes Investment Confidence Index (ICI) in India shows that the Retail Investor Confidence Index ranks the highest at 151.7, followed distantly by Advisor Confidence Index (135.4) and Corporate Confidence Index (134). The findings of the survey also indicate that Inflation has been the single biggest confidence killer in the Indian economy over the last two quarters. This quarter the Eurozone debt crisis appears to have dented confidence to some extent.

Key findings include –


  • A significant trend noticed over the last four quarters suggests that the Indian investor is getting increasingly conscious of monetary and fiscal policy developments. The retail investors’ vote for RBI’s monetary measures as a positive economic indicator has been gradually increasing over the last four quarters: 9% in July 2009, 17% in September 2009, 21% in February 2010 and 31% in June 2010.
  • Concern over inflation is back to September 2009 levels for corporate and retail investors after a spike in February 2010 but continues to be the most negative economic indicator for the financial community
  • Among advisors (37%), Greater China is perceived as the most attractive international investment destination, while among retail investors (17%), it is the USA


– 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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