Somerset: State-owned firms can give new boost to runaway Indian market

The pro-business reforms implemented by India's prime minister Narendra Modi are making state-owned companies look attractive for investors, according to Somerset Capital's Dhawal Mehta.

Mehta joined Somerset Capital from Reliance Asset Management last year as an emerging markets manager. As the group prepares to launch a dedicated India fund later this year, Mehta is looking to state-owned enterprises for future returns in the region, as he expects new reforms to boost the sector. Since prime minister Modi's election last May, India has seen exceptionally strong performance, with the BSE Sensex index up 44% over the year. All the top ten performing funds over the past year are Indian equity funds, according to Morningstar, including Matthews Asia Funds India, up 8...