India is expected to become an independent asset class within emerging markets due to domestic capital becoming the primary buyer, reduced vulnerability to foreign flows, strong retail investor participation (SIPs) reducing volatility, and a structural shift in equity supply dynamics.
"I think India is an idea whose time has come we've reached a critical mass um I would also say that India is on its way to earning the right to be an independent asset class within emerging countries and third I would say that a structural change that has happened is that the marginal buyer today is domestic capital and not foreign Capital Indian markets earlier were vulnerable to foreign flows we are now far less vulnerable to foreign flows the whole sip wave in amongst retail investors and in has also been very strong and that is reducing volatility lastly on the supply side you know government used to be a continuous seller in terms of PSU disinvestment every year which has not been happening for many years now so there is a fundamental change in the demand supply of for equity in the country and the supply side response is taking a long time which means we are not getting adequate supply of equities that will happen over a period of time but as of now we are in this goldilock scenario where it is not too hot it is not too cold"
