EM managers: Why India is a buying opportunity

EMs

Emerging market managers are looking to India as a buying opportunity after an equity and currency collapse hit some of the leading funds in the sector.

Following May’s emerging market sell-off on news the Federal Reserve could taper bond purchases, India has continued to suffer, with the rupee hitting all-time lows. Managers have blamed the magnitude of the fall on the country’s current account deficit and lack of external investment, which have spooked investors despite a government pledge to halt the slide. Heavy falls The currency suffered its biggest one-day fall for 20 years last week, hitting 69 rupees to the dollar. The rupee has lost a quarter of its value year-to-date. Equities have also plummeted, with the Bombay Sensex ...