The land of Abenomics is betting on Modinomics.
The demand is so strong that assets of Nomura Holdings Inc.’s India equity fund quadrupled to almost 400 billion yen ($3.6 billion) in just the past year. Japanese investors owned $13 billion of Indian stocks and bonds at the end of June, the most in data going back to 2012, according to India’s regulator.
“It’s not like we put in any special marketing effort for this fund,” said Kazuto Wada, an executive director at Nomura, Japan’s largest brokerage. “Investors are looking at where the growth will be in the medium to long term, without having to worry about short-term swings in the market.”
India’s economy is expanding at about seven times the pace of Japan’s, buoyed by a burgeoning middle class and more one than million young people joining the labor force every month. Indian shares have hit multiple records this year amid optimism about Prime Minister Narendra Modi’s policies.
More will update soon!!
