New York-based JPMorgan is bullish on equity sales in India, estimating that the country will raise $30 billion per year.
Market momentum is strong in India with demand from both local asset managers as well as foreign investors, according to JPMorgan India head of equity capital markets Abhinav Bharti.
«In block trades, every year now you can average $10 billion from 2024 onwards,» Bharti said in a «Bloomberg» report. «I can see the building blocks of India becoming a market that can every year raise more than $30 billion from primary and secondary sales for corporates.»
China Softness
In contrast, China has been undergoing headwinds from an economic slowdown and geopolitical tensions which has significantly impacted investor sentiments.
«Because of recent softness in Chinese economic data, a lot of these global [emerging market] fund managers are underweight on China and now where you go and deploy that extra capital, you must have a counter overweight as well,» Bharti explained. «India is benefiting from that.»
In the first eight months, JPMorgan was the top manager of equity and rights offerings in India with a market share of nearly 15 percent, according to Bloomberg data. This was followed by Kotak Mahindra Bank which had a market share of 11 percent.
