India most promising story for next five years; Sensex on track to hit 40K if investmnet cycle picks up: CLSA

India is by far the most promising story from the five-year perspective within Asia and the emerging markets, said Christopher Wood, equity strategist at CLSA, on the sidelines of an investor conference in Gurgaon. 

Responding to reporter queries, Wood said he remains 'overweight' on India and sees Sensex touching 40000 levels if the investment cycle picks up Stock Market Trading Tips

He is overweight on India and in his long-only portfolio having 25 stocks in Asia, he has more than 20 per cent stocks in India. These are meaningful bets on India, he explained. 

Wood expects the investment cycle to resume in India in the next two years. He also believes there is potential for meaningful cuts in interest rates in India during 2015 and the other positive for India clearly is the decline in oil prices, which is benefiting India. So, "for all these reasons, I remain extremely constructive in India," added Wood Nifty Trading Tips 

Some of the policy execution is beginning to come through which will support economic growth, say the CLSA analysts. They continue to expect gradual improvement initially paving the way for a much stronger rebound next year, that should accelerate even further in FY17 Intraday Trading Tips 

"In terms of our growth forecast, 5.6 per cent for this year, 6.5 per cent for next year and 7.2 per cent in FY17, by which time we think India would actually be growing faster than China," saidRajeev Malik, senior economist, CLSA Commodity Trading Tips

"Bear in mind this shift that is taking place in Asia, structurally, India would be doing a lot better. China however having already had its day in the sun would structurally be moving towards lower growth trajectories," he said Financial Astrology Tips