Caught in the middle of political uncertainty, market volatility and fickle FII flows, investors in the Indian stock market could take their cues from the investment behavior of multi-national corporations (MNCs). More than two dozen MNCs operating in the country have ignored all political and the economic instability issues to increase the size of their domestic investments. This, more than any rhetoric, indicates a high degree of confidence in the India growth story.
A high level of Capital Expenditure (capex) in a country is believed to be a good indicator of economic growth since it indicates a high level of confidence in the growth story of a country. In India, the capex level has been falling for three years and is now the same as it was in the year 2001. Read More