'The appetite is strong for India'

Kevan Watts, President, Global Wealth Management, Merrill Lynch, says India is a great investment opportunity. Excerpts:

How do you read Adani Power’s listing?
I’m very positive about the stock. It’s a landmark offering in the Indian capital markets. The IPO market is back, with very quality companies, and power is a very important sector. So, I’m very positive.

What’s your call on the power sector in India?
The importance of infrastructure cannot be over-emphasised.

I think companies that take the opportunities in infrastructure will do very well over the next five years.

Does investor appetite lie in the secondary or the primary market?
India remains a very attractive investment destination and many global investors see this as a good opportunity. They will look at issues selectively, they will worry about liquidity, flow. But, fundamentally, India is very attractive for investors and that provides the huge source of investment to support the markets. It won’t go up every day, not every transaction will succeed, but in the context of financial markets around the world, India is alive and well and doing business.

Your assessment of liquidity and the appetite for Indian papers?
The fundamental appetite is very strong for India. For a particular issue, it’d depend on the company’s business plans and their execution. And on what people see in a short term trading range. The important thing is people like the investment opportunities in India. They come with the intent to invest. If you go back 25 years, you will not find that kind of a backdrop to invest. That’s a big change.