In spite of the terrorist blasts on commuter railroads on Tuesday, India's economy and stock market should continue to deliver strong growth, Andrew Foster, lead portfolio manager on the Matthews India Fund, told MarketWatch.
Because of the low level of violence that has occurred over the past 10 years and the deregulation of the markets that has attracted private investments and foreign trade, the country will bounce back, Foster said.
And while there is political risk in India, that is largely already factored into the market, he added. The one area for concern, however, is increasing interest rates.
"India has already corrected steeply from its highs in early May, based on the notion that interest rates might need to move quite a bit higher," Foster said. "That has had heavy influence, and markets will continue to fixate on the direction of interest rates, at least through the end of this year."
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.