Making Markets Saurabh Mukherjea: The Case for Investing in India - [Making Markets, EP.42]
Aug 16, 2024
Saurabh Mukherjea, the founder and Chief Investment Officer of Marcellus Investment Managers, presents a compelling argument for why investors should focus on India over China. He discusses the rise of domestic inflows and shifts in foreign investments, particularly post-COVID. Saurabh highlights the importance of political contestability in India, encouraging accountability and growth. He also outlines emerging investment themes, such as the empowerment of women and evolving supply chains, which set India apart as an attractive investment destination.
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India's Oversold Story
- India's strong market performance is partially due to its large English-speaking professional community's marketing skills.
- Underlying this is genuine growth, with 10-20 year dollar returns rivaling the US.
Investment Flow Mismatch
- Despite India's strong performance, China receives significantly more foreign investment.
- India's foreign portfolio investment is one-seventh of China's, despite better returns.
China's Hope vs. India's Performance
- China's initial investment appeal was based on hope rather than consistent company performance.
- India produces more companies with sustained growth and high ROEs despite a smaller economy.