Portfolio Investment Opportunities in India

by David M. Darst

Overview

Investment strategies and knowledge for asset managers investing in India

This e-book only investment report will detail India's asset classes, its investment strategies, risks and advantages, and politics and cultural history with an eye toward serving investment advisors and asset managers looking for up-to-date investment knowledge on specific alternative asset classes.

Product Details

ISBN-13:	9781118824252
Publisher:	Wiley
Publication date:	11/15/2013
Series:	Wiley RealTime Finance
Sold by:	JOHN WILEY & SONS
Format:	eBook
Pages:	168
File size:	3 MB

About the Author

David M. Darst (New York, NY) is a Managing Director of Morgan Stanley and chairs the firm's Global Wealth Management Asset Allocation and Investment Policy Committee. He serves as Chief Investment Strategist of the Global Wealth Management Group, with responsibility for Asset Allocation and Investment Strategy, and was the founding President of the Morgan Stanley Investment Group. Mr. Darst joined Morgan Stanley in 1996, after more than 20 years with Goldman Sachs, where he served as a senior executive in the Equities Division. Previous responsibilities with Goldman included serving as Resident Manager of their private bank in Zurich. Darst is the author of four books: The Complete Bond Book, The Handbook of Bond and Money Markets, The Art of Asset Allocation, and Mastering the Art of Asset Allocation. He has also contributed numerous articles to Barron's, Euromoney, The Money Manager, and other publications. Darst is frequently quoted and regularly profiled in the business press including the New York Times, the Wall Street Journal, Reuters, Financial Times, among others. He is a frequent guest on CNBC, Bloomberg, and FOX News, and on radio shows. Darst earned his MBA from Harvard Business School and received a BA in Economics from Yale University, both of where he has served as a visiting faculty member. Darst also holds a CFA.

Table of Contents

About the Author ix

Introduction xi

Section 1: India at a Glance 1

Post-2010 Developments 2

The Indian Subcontinent 2

India’s Political System 3

Topography of India 3

Sanskrit and the Languages of India 3

India’s Kingdoms and Empires 3

India’s Cultural Development 5

Religion in India 14

Media and Entertainment in India 15

India’s Megacities: Delhi, Mumbai, and Kolkata 16

India’s Megacities of the Future 18

Notable Indian Cities 20

Transportation in India 21

Evolution of Modern Indian Paper Currency 22

India’s Political System 23

The Political Landscape in India 24

Key Political Figures 25

Major Private Business Groups in India 29

Select Structural Reform Initiatives Since 1991 29

India’s Five-Year Plans 31

India’s Nuclear Energy Industry 34

Reserve Bank of India (RBI) 35

India’s Foreign Exchange Reserves 37

Six Key Components of Economic Takeoff in the West 37

Foreign Direct Investment Flows 38

India’s Trade Activity with the United States 39

India’s Trade Activity with the World 40

Section 2: Issues for Consideration 43

Assessing India’s Economic Environment 44

Intermediate-Term Accelerators and Hindrances in India 45

Bullish Factors Affecting India’s Economy and Markets 47

Bearish Factors Affecting India’s Economy and Markets 49

India’s Economy in Context 54

The India Landscape: Megatrends 56

Demographic Trends in India 59

Labor Supply and Workforce Trends in India 61

Education in India 63

India’s Rising Middle Class 65

Increasing Urbanization Rates in India 69

India’s Investment in Infrastructure 70

India’s Gross Domestic Savings as a Percentage of GDP 72

India’s Gross Capital Formation as a Percentage of GDP 73

India’s Current Account Balance as a Percentage of GDP 74

India’s Lingering Fiscal Deficit 75

Internet Usage and E-Commerce 77

Pakistan: A Brief Economic Overview 77

Bangladesh: A Brief Economic Overview 80

India and China: A Critical Global Relationship 82

India as an Emerging Global Power 84

Section 3: Investing Background 87

Inclusive Wealth 89

Asia-Pacific Market Valuations 91

India’s Outsourcing Industry: Leading by Example 91

Indian Initial Public Offering Activity 93

Indian M&A Activity 93

India’s Domestic Fund Management Industry and India’s

Individual Investors 97

Regulatory Landscape for Foreign Investors 99

Performance of the Bombay Stock Exchange SENSEX 30 Index 102

Performance of the National Stock Exchange S&P CNX Nifty Index 102

The MSCI India Index 107

India’s Corporate and Government Bond Market 111

Short-Term Interest Rates In India 113

Section 4: Understanding India’s Investment Potential 115

Domestic Politics 116

The Economy 116

The Indian Rupee 118

Credit and Capital Markets 120

Geopolitics 120

India’s Property Market 121

Inflation and Deflation 122

Energy 126

Security 128

The Indian Diaspora 128

The Relationship between the United States and India 128

Other Issues 129

Section 5: Overview of the Investment Landscape 133

Overview of Closed-End and Open-End Funds with Exposure to India 133

Private Equity/Venture Capital in India 135

Select India-Related Equity Indices 138

The Bombay Stock Exchange 139

Overview of Indian ADRs 142

Overview of India Convertible Bonds 142

Section 6: Additional Sources and Disclosures 143

Select Web Sites 143

Books 143

Morgan Stanley Research Publications 145

Periodicals 146

Publications 152

Television Broadcasts 152

Section 7: Glossary of Indexes 153