Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

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

May 31 (Bloomberg) -- 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.”

To contact the reporter on this story: Shikhar Balwani in Mumbai at sbalwani@bloomberg.net;

To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.