Optimstic Investors - Indians!

Indians are still the most optimistic investors in Asia mainly because of its sustained domestic growth momentum, but going into 2011, they have somewhat lower expectations than they did in the previous quarters, says a survey.

The quarterly Investor Dashboard Sentiment survey by global financial services group shows that amongst the ten Asia Pacific markets included in the survey, India is at 161 (a 11 point fall from Q2 2010) continues to lead the region and manages to sustain very optimistic sentiment.

High inflation rate continued to hurt the Indian economy. Besides, there is a decrease in sentiments, especially in terms of past three months economic indicators - economic situation, return on investments, personal and household financial situations, the survey said.

Indian investors' expectations for the quarter ahead are little lower owing to the increasing inflationary pressure in the economy, falling of investment quantum and concerns that interest rates will rise further, the report added.

Asia investors (ex-Japan) are positive about their local economies despite remaining cautious of economic recovery in the US.

Besides, concerns about the impact of the Euro zone debt crisis looms large on the horizon as investors across Asia are optimistic that a double-dip recession is unlikely and Asian markets are possibly decoupling from the global markets, the study said.

Source: http://www.rediff.com/business
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