Indian equities gained in September compared to the global equity sell-off as both foreign and domestic investors were net buyers and India reported (in August) its year-over-year Q2 numbers where GDP grew by over 20%. These strong numbers may result in better than expected numbers for the fiscal year.

We reflect on that these strong numbers are generated with a reduced lockdown economy and that it is more upside ahead as the economy continues to reopen.

The hugely important monsoon season, that typically starts in June and lasts for four months, just ended with above average rain in September but was erratic in July and August, and the rain season is expected to come in around the lower end of the normal.

Given the green shift and global focus, Indian policies where accommodating towards batteries and electric vehicles, to enable India’s role in these important segments in the future.

India’s structural efficiency deserves a little example here: It used to be that if you wanted to open an account in India, as a foreign institutional client especially, before you would need months of effort and numerous documents to open an account as a foreign institutional investor. The FPI regime now enables the same to be done in days. Another example would be the round-the-clock Real-time Gross Settlement (RTGS) transfer. 

Domicile: Malta
Source: Reuters, Enam