Noted Investor Akash Prakash On China, India, Flows, Valuation, Elections & More | N18V | CNBC TV18

TL;DR

Global asset allocators are increasingly disillusioned with China and showing more interest in India due to its long-term growth prospects and strong domestic sentiment.

Transcript

this is uh you know the famed investor noted investor Akash prakash who runs a few billion dollars of money here in India uh you know who's basically written a column he writes a piece for the business standard and we've picked up the latest in terms of what he's saying uh here for this piece so you know this piece basically is based on as he calls... Read More

Key Insights

• 📼 Global asset allocators are becoming disillusioned with China and setting limits on their exposure due to short-term liquidity pressures.
• ✋ India is attracting interest from allocators who previously overlooked the country, driven by its long-term growth prospects and ability to deliver high-quality compounders.
• 🌐 The upcoming elections in India do not seem to concern global investors, who assume continuity in the current political dispensation.
• 🫵 The US continues to be viewed favorably by allocators due to factors such as innovation, energy surplus, demographics, and strong companies.
• 🙈 While money is expected to flow into India, valuations are seen as a stumbling block, and a market correction is seen as necessary for new investors to gain comfort.

Questions & Answers

Q: What is the current sentiment towards China among global asset allocators?

According to Akash Prakash's meetings, there is widespread disenchantment with China, with allocators setting limits on their exposure. Short-term liquidity pressures are slowing the movement of capital flows from China to other countries.

Q: Why is India gaining interest from global asset allocators?

India's long-term growth prospects and ability to deliver high-quality compounders are driving the interest from allocators. The country's domestic sentiment and large-scale domestic flows are also appreciated.

Q: Are global investors concerned about the upcoming elections in India?

According to Prakash, there is little concern among global investors regarding the upcoming state elections or general elections in India. Most investors assume that the current political dispensation will continue.

Q: Why do global asset allocators question the need to invest outside the US?

Allocators often question the need to invest outside the US due to factors such as US' innovation, energy surplus, favorable demographics, and a strong ecosystem of companies.

Key Insights:

• Global asset allocators are becoming disillusioned with China and setting limits on their exposure due to short-term liquidity pressures.
• India is attracting interest from allocators who previously overlooked the country, driven by its long-term growth prospects and ability to deliver high-quality compounders.
• The upcoming elections in India do not seem to concern global investors, who assume continuity in the current political dispensation.
• The US continues to be viewed favorably by allocators due to factors such as innovation, energy surplus, demographics, and strong companies.
• While money is expected to flow into India, valuations are seen as a stumbling block, and a market correction is seen as necessary for new investors to gain comfort.
• The long-term case for India is gaining traction, but it will take some time for the money to materialize from China and other parts of the world.

Summary & Key Takeaways

• Famed investor Akash Prakash shares insights from his meetings with global asset allocators, revealing a shift in sentiment towards China and India.

• China is experiencing disenchantment, with many allocators setting limits on their exposure and facing short-term liquidity pressures.

• India is gaining interest from allocators who historically overlooked the country, driven by its growth prospects, high-quality compounders, and strong domestic sentiment.