The global downturn has given added impetus to the privatisation process in India as the Government looks to balance its budget. The upcoming IPO for Coal of India was 15 times oversubscribedreflective of a dynamic which will serve to reinvigorate the Indian economy and ultimately spell good news for JP Morgan Indian Investment Trust ( JPMorgan Indian Investment Trust (LON:JII) ).
Privatisation is just one part of the economic liberalisation process with de-regulation, increased openness to trade and the strengthening of private property rights also being important. Nevertheless it is a key ingredient as removing the dead hand of Government control can shake up industries to become more efficient.
General equity issuance in India has been greeted with strong investor enthusiasm with 121 initial IPO’s do far this year, four times the number of a year earlier. In part this is driven by foreign investor enthusiasm with $7.1 billion being poured into Indian stocks and bonds by foreign investors in September which was a monthly record.
Whatever the driver the Sensex, India’s key index, is trading at around the highs it hit in January 2008. As such JII has closed above £5 for the first time recently….
Disclaimer: Please note all prices are for information only, they should not be relied upon for accuracy or trading. All prices quotes are based on CFD prices and are similar though not always identical to real exchange prices. STOCKTRKR or anybody connected with STOCKTRKR will not accept any liability for loss or damage arising from use of any information/commentary/charts or articles which is provided 'as is' for educational purposes only, nothing contained on this website should be considered as investment advice - please seek proper investment advice from registered financial broker or institution if you wish to trade on global markets and ensure you are familiar with the risks.
