India Economy Showing ‘Pain’ of Rate Advances, IDBI Federal Says

Aneesh Srivastava, who oversees $465 million as chief investment officer at IDBI Federal Life Insurance Co. in Mumbai, comments on India’s economy and the outlook for the nation’s stocks.

The country’s economy expanded 7.8 percent in the three months ended March from a year earlier, the government said in a report today. The median of estimates in a Bloomberg News survey was for an 8.1 percent increase.

The Bombay Stock Exchange Sensitive Index pared a gain of as much as 1 percent. The gauge rose 0.5 percent to 18,327.55 at 11:23 a.m. local time.

Srivastava spoke by telephone.

“The GDP number shows that interest rate increases have started to impact economic growth. The pain has started coming in. This will also translate into a moderation in corporate earnings.”

On the markets:

“The market’s not going to go anywhere in a hurry. It is building in an economic growth of somewhere around 8 percent to 8.2 percent going forward.”

On his investment strategy:

“One has to be defensive. We would prefer sticking to makers of consumer goods and pharmaceuticals. It is better to have lower exposure to engineering and infrastructure stocks.”

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To contact the reporter on this story: Shikhar Balwani in Mumbai at;

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