India's sell-off presents new opportunities

INDIA

With a new central bank head and a credible monetary policy, India's macro risks are receding, according to Matt Linsey, manager of GAM Star North of South EM Equity fund.

Many of the key issues affecting the performance of emerging markets are not new or unusual. Seasoned emerging market investors are often offered the opportunity to watch the same movie play out in different markets, at different times (see box below). The one emerging market that we have become more positive on recently is India. With the country’s debt based on energy imports, reforms in government policies, and a boom in the shale gas market, possibilities are opening up for jaded emerging market investors. The 25% correction in the rupee last year created opportunities – especially s...