Indian stocks to make a comeback as banking crisis passes, says AMP

India’s stocks will make a comeback as the economic benefits of a landmark corporate-tax cut prevail against concerns over a shadow banking crisis, according to AMP Capital Investors.

“Shadow banking incidents are unlikely to derail the positive backdrop for India equities following the tax cuts,” said Nader Naeimi, who oversees more than $1 billion in assets at AMP Capital. “Indian firms have now become a lot more competitive, which will attract a lot of investors, even those that had valuation concerns.”

Naeimi’s funds went from having no exposure to Indian stocks to boosting it to 5% of assets after Narendra Modi delivered