Global investors keen on India

Global investors appear to be 'most optimistic' on Indian market after domestic companies showed consistent long term improvement in profits since 1988, according to a survey by global merchant banking major Credit Suisse First Boston.

Corporate returns in Asia, except Japan, have consistently improved since 1988 with companies based in Hong Kong, Korea, Taiwan and India being the main contributors to the long-term trend, the CSFB-HOLT investment guide said.

"Investors appear to be the most optimistic on four markets -- India, Japan, Malaysia and the Philippines," it said.

At current prices, it said: "They (investors) are paying for returns in these countries to continue to improve slightly from current levels as companies in these markets deliver ongoing structural improvements."

Investors are optimistic on IT consulting and services, semi-conductor equipment and software services sectors, CSFB said, adding they are pessimistic on electronic manufacturing services, computer storage and peripherals industry.

CSFB expects that companies based in Taiwan, Thailand, Korea and China are slated to earn the highest returns in 2004.

The CSFB HOLT monitors and carries out valuation of 16,000 companies globally including over 6,500 Asian companies.