In PM Modi's US Visit, A Gift For Indian Economy And Markets
NDTV
The sharp decline in the nation's current account deficit, helped by lower crude oil prices and rising services exports, is buoying sentiment toward the currency.
Prime Minister Narendra Modi's trip to the US couldn't have come at a better time. A buzzing economy, equity benchmarks at record highs and a rapidly growing consumer market all make for a great advertisement as he pitches the country's potential to American corporate executives and investors.
Stocks in India have lured a net $8.7 billion in foreign inflows since March, set to be the most in any quarter since the end of 2020. Rupee-denominated bonds are on track to witness the longest streak of monthly buying by overseas funds in almost four years, while the local currency is offering the second-best carry returns in Asia this year, according to Bank of America.
PM Modi's visit promises more: Tesla Inc. is likely to make a significant investment in India, Chief Executive Officer Elon Musk said after meeting PM Modi, who also urged Bridgewater Associates founder Ray Dalio to deepen investments in the country. General Electric Co. and Hindustan Aeronautics are set to sign an agreement during PM Modi's trip to produce engines for India's fighter jets.
"Investors agree that India is passing through a 'Goldilocks' phase," Samiran Chakraborty and Baqar Zaidi, economists at Citigroup Inc., wrote in a note this week after meeting equity and fixed-income investors in London.
