Wednesday, 10 August 2011
Thursday, 28 July 2011
India among most expensive markets in the world: Rahul Bhasin, Managing Partner, Baring Private Equity Partners (India)
The stock markets have been in the doldrums for a while now. When do you think the Indian markets would catch some wind?
First of all I am not so sure whether the Indian markets have been in the doldrums. If you compare across the world and across theemerging markets, we are probably one of the most expensive markets in the world today. So I would not quite say it is in the doldrums. What has happened is probably they have run up a lot sooner. I just think that earnings are catching up with valuations and that is what is happening. Also, if you think about it, in most countries in the world, in most parts of economic cycles when interest rates go up, usually capital markets and asset prices correct.
We have had a scenario where interest rates have been going up systematically with the capital markets and most asset prices in this country have not corrected and that is because of a disconnect because the real economy is being impacted by interest rates and by the monetary policy of the country. But capital markets and asset markets in this country are clearing on the basis of the cost of international capital, not the cost of local capital and hence the markets have stayed actually higher than they would have than if they were determined simply by the cost of local capital.
Thursday, 21 July 2011
Leadership
Do not follow where the path may lead.
Go instead where there is no path and leave a trail.
Harold R. McAlindon
Go instead where there is no path and leave a trail.
Harold R. McAlindon
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