Negative India Rates to Boost Appeal of Dividend Stocks, Gold
- Software makers, state-run firms offer opportunity: Jefferies
- India’s 10-year yield may fall below 5.5% on RBI’s measures
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Investors in India may turn to dividend-yielding stocks or physical assets such as gold and property as excess liquidity drives real interest rates into a negative zone for the first time since 2013, according to Jefferies India Pvt.
“Low yields and uncertain growth could drive outperformance of sustainable high-yielding stocks,” Mumbai-based analysts Mahesh Nandurkar and Abhinav Sinha wrote in a note to clients.