Investors expect more policy measures: Citi India's Abhinav Khanna

Abhinav Khanna, head of equity at Citi India, expects emerging markets (EMs), and India in particular, to see higher allocation by foreign investors over the next 12 months

Global investors have been keenly watching the policy measures being unveiled in India over the past few weeks. Abhinav Khanna, head of equity at Citi India, tells Puneet Wadhwa that he expects emerging markets (EMs), and India in particular, to see higher allocation by foreign investors over the next 12 months. Edited excerpts:

1) How do you view the recent policy announcements by the government?

The corporation tax cut was by far the most significant. It had an immediate positive impact on earnings per share (8-9 per cent at a headline level FY20 onwards, ceteris paribus). This step makes Indian corporates even