Though the JP Morgan Asset Management India and ValueNotes' quarterly Investment Confidence Index has remained almost flat between July and December 2011, the investment sentiment of investors with smaller wallet sizes (Rs 2-5 lakh) has fallen the most. It, however, has improved among HNIs, said the survey. Significantly confidence among young investors – aged 22 to 25 – has witnessed a 36-point fall since last year.
“After witnessing a series of highs and lows over five quarters, the ICI has declined continuously over the past year,” said the survey.
ICI captures the confidence of the retail and corporate investors as well as financial advisors on the Indian economic and investment environment.
Mr Nandkumar Surti, Managing Director and Chief Executive Officer of J.P.Morgan Asset Management said: “The weak investment sentiment is probably a reflection of volatility surrounding the country's macroeconomic environment. The Sensex downslide, rupee depreciation, a ballooning fiscal deficit, high inflation rates, combined with rising global uncertainty triggered by deepening of the Euro zone crisis have hurt investment sentiment.”
The survey was conducted by market research company Value Notes on behalf of J.P. Morgan Asset Management. As part of the survey, 1,635 retail investors, 50 corporate treasuries and 282 advisors were interviewed in November 2011 in eight cities across India. These cities comprised Mumbai, Delhi, Kolkata, Chennai, Ahmedabad, Bengaluru, Pune and Hyderabad.
Sensex movement
About 48 per cent of retail investors and 76 per cent of advisors expect the benchmark index to trade between 17,000 and 20,000 in June 2012.