"One of the most exciting things about India is Modi’s reforms," Mark Mobius, the executive chairman of Templeton Emerging Markets Group, said at a Bloomberg event in Mumbai on Friday. He also ensured a smooth transition at the central bank’s helm, removing a key uncertainty for investors, and contributing to the rupee’s 1.4 per cent gain last quarter. Foreign investors have sold $56.4 million of Indian shares this month, while their holdings of local government and corporate bonds have fallen by about 66 billion rupees ($987 million). Going forward, they will drive the market, not foreign investors.”The 10-year yield fell two basis points on Monday to 6.74 per cent. Being the fastest-growing market, it may be difficult to ignore India for a sustained period.”The recent rise in Brent crude prices has also impacted sentiment for some investors as India imports about three quarters of its oil.

Source: Economic Times October 24, 2016 06:56 UTC