Investors are discerning, investing only in quality deals: Raj Balakrishnan

Investors are happy to accept a lower cost of capital for companies, which have the right governance structures, good management, and excellent track record, says Raj Balakrishnan

The Sensex is hovering around lifetime highs, but primary exuberance is missing. Raj Balakrishnan, head of India investment banking, Bank of America Merrill Lynch, tells Sundar Sethuraman and Samie Modak that investors are sticking to companies with good governance structures and track record. Edited excerpts:

How is all the negative news flow affecting deal activity? 

Investors are not exactly rattled. Take a look at the deals we have executed in the past six months. Real estate is arguably one of the sectors most affected by the non-banking financial company crisis. Yet, we successfully launched the Embassy real estate investment trust