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USIBC hosts exclusive round table for business leaders and investors

She invited leading investors present in the room to become part of the India growth story…reports Asian Lite News

The Confederation of Indian Industry (CII) and the US Chamber of Commerce’s US-India Business Council (USIBC), co-hosted an exclusive roundtable for business leaders and investors with Finance Minister Nirmala Sitharaman in Palo Alto.

The roundtable was attended by senior executives, private sector business leaders, venture capitalists, institutional investors, and representatives of pension and endowment funds, representing combined assets under management of over $1 trillion.

Moderated by Atul Keshap, President, USIBC, this executive gathering was also joined by V. Ananth Nageswaran, Chief Economic Advisor, Taranjit Singh Sandhu, Ambassador of India to the US, among others.

The roundtable highlighted India’s emergence from the pandemic as one of the world’s fastest growing major economies and outlined the Centre’s efforts to support growth by a process of sustained reforms across sectors, increased capital expenditure especially in infrastructure, and measures to boost FDI.

“With a growth forecast of almost 8 per cent in FY 2023, India is likely to remain the world’s fastest growing major economy over the next few years, driven by the continued expansion of its technology and start-up ecosystems,” Sitharaman said.

“In this context, US-India collaboration in financial services and emerging technologies will support increased investment and innovation, and fintech represents a unique opportunity for sustainable and inclusive growth.”

She invited leading investors present in the room to become part of the India growth story.

Sandhu remarked: “There is a fintech revolution happening in India. As a country that runs the largest financial inclusion programme in the world, to the country that has highest fintech adoption rate globally to the highest number of real time online transactions globally, India has a lot to offer to the world. The financial sector in India has recently seen PM guided and FM led reforms.

“We hope that the US venture capitalists, endowment funds and asset management companies look at India to start their new journey or scale up existing operations and partner and grow.”

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Business Economy

Investors turn from growth to value stocks

This is all the more the case because renewable stocks are underperforming. The S&P500 Clean Energy Index has declined by 12% so far in 2022, compared with a 20 per cent gain in the S&P Global Energy Index, Wood said…reports Sanjeev Sharma

The change in the global equity market leadership looks ever more pronounced in terms of the shift from growth to value stocks, Jefferies analyst Christopher Wood said.

Value stocks have now outperformed growth stocks by 16.1 per cent since mid-November as per the MSCI index, he said in his commentary, Greed and Fear.

Overall, the current situation can best be summarised as the inverse of Goldilocks. It also continues to look ever more the case that the FANG stocks peaked as a percentage of S&P500 market cap back in the summer of 2020, Wood said.

In this respect, the rotation out of growth stocks will probably not be completed until the leaders of the bull market (i.e. the FANG stocks) succumb in a more decisive fashion.

The 2000 Nasdaq rout could be a useful precedent here since the dotcoms collapsed first with the Nasdaq Composite turning down from March 2000. But it took another six months before the S&P500 started to decline, Wood said.

Meanwhile, the continuing strength of energy stocks this year must be a growing concern to ESG funds, which by now means most funds since they are missing out on performance.

This is all the more the case because renewable stocks are underperforming. The S&P500 Clean Energy Index has declined by 12% so far in 2022, compared with a 20 per cent gain in the S&P Global Energy Index, Wood said.

This is part of an evolving pattern where last year’s winners are this year’s losers and vice versa, though in the case of oil stocks they also performed last year. But then at the bottom in 2020 when, remember, the WTI Crude oil price turned negative on April 20, 2020, the energy sector subsequently shrunk to an all-time low as a percentage of S&P500 market cap in early November 2020. The energy sector’s share of S&P500 market cap declined from 4.2 per cent at the start of 2020 to a record low of 1.8 per cent on November 6, 2020 and has since risen to 3.5 per cent.

Global oil demand over the past 15 years has been revised up by about 2.9 billion barrels. This is the biggest-ever upward revision in demand and has certainly not received the publicity it merits. The revisions are primarily due to reassessments of consumption in Saudi Arabia and China.

The results are startling and confirm what GREED & fear has long been told by bullish oil experts: namely that is in recent years consistently underestimated oil demand, most particularly in developing countries.

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