Japanese funds flock to India --------------------------------- NDTV Correspondent
Wednesday, December 21, 2005 (New Delhi):
Japanese funds are back in action in the Indian markets after a 15-year lull.
Leading the charge is Nikko Securities, which is raising $300 million and eyeing a bigger target of $1billion.
The billion-dollar feat has already been managed by Nomura just a few months ago, and the firm may soon launch a mid-cap dedicated fund.
Lipper Investments also says this is an exciting time for Japanese money to come into India, and the country may soon have more than the six Japanese funds at present.
The good news is that these funds are also looking at long-term investments, especially in sectors like resources, mining, power and infrastructure.
The enthusiasm is a significant measure of the risk perception in the Indian market, as Japanese investors are inherently averse to risk, and a big-money comeback signals that Indian markets are really maturing.