According to a survey by investment professionals’ grouping CFA Institute, a huge number of Indian investment professionals are positive about prospects of global as well as domestic economies. However, they are worried about lack of ethical culture in financial firms.
According to CFA Institute’s annual survey, titled ‘Global Market Sentiment Survey which was released on Monday, it stated that Indian members are even more optimistic about their local market. In 2014, around six in ten (61 percent) respondents expect the Indian economy to expand. But there are issues about the political instability which may have a negative effect on the outlook. A startling figure of eight in ten (78 percent) quote this as the huge risk to the local economy.
The report also stated that Indian members are increasingly concerned about the lack of moral culture within financial firms. About 62 percent identified this as the major cause causing the present lack of trust in the finance industry. The report also stated that only Singapore (63 percent) and Switzerland (71 percent) are more serious.
As many as 96 percent of respondents from India felt that effects on energy prices caused by unrest in the Middle East would have a negative impact.
The report went on to add that many more Indian respondents believed that progress of recovery in Europe might have a constructive impact (85 percent), to a much greater degree than they believed progress of recovery in China (56 percent) or even domestic political stability (58 percent) would.
India will be into a general election next year. This is being seen as the cause of domestic political instability. According to CFA Institute president and CEO, the number of members who anticipate the global economy to get bigger has nearly doubled in the last two years.