FIIs To Boost Indian Markets Due To Favourable Business Environment, Says Edward Yardeni

India presents a promising investment option, according to Edward Yardeni of Yardeni Research Inc. Foreign investment flows are likely to bolster the Indian stock market, given ongoing reforms and a favorable business environment, he said.

"Foreign investors will continue to go to India. The only problem is it is not cheap."

The unexpectedly poor employment figures in June in the US were led by unusual weather conditions, particularly Hurricane Beryl, said Yardeni.

"Weaker than expected employment report came in July, but looking closely at it, it might have been the weather, hurricane Beryl was at play and that may be the reason behind the depressed data. All and all, the economy is still resilient and we will get over the latest recession fear. It is a no-show recession," he said.

With concerns of a recession, the yen carry trades and geopolitical tensions, Yardeni acknowledged the complexities involved in predicting market damage. The unwinding of the yen carry trade had been swift, with Japanese officials signaling caution regarding any further tightening, he pointed out. This has contributed to stabilisation in stock prices, suggesting that the immediate impact on markets might be less severe than initially feared.

Downturn in the Chinese real estate market has led to global oversupply issues, impacting industries like automotive in Germany. However, this global competition has led to tightening by central banks, suggesting a cautiously positive economic outlook, he said.

For individual investors, Yardeni advocates for a long-term investment strategy, echoing the principles of Warren Buffett. "I recommend holding onto investments for the long term." The recent market sell-off offers opportunities, particularly in the information technology sector in the US, he said.

The fundamental growth story in India remains strong, and the current market conditions can present strategic investment opportunities, Yardeni said.