Indian market less attractive to investors: report

Mumbai Sept 12 (UNI) India was a less attractive option among emerging markets for investors as 'there is a mismatch between planning and growth', a research report by JP Morgan said.

Adrain Mowat, Managing director of Asian and Emerging markets, JP Morgan, ''the global financial market turmoil and domestic political developments due to the Indo-US nuclear has added to the market volatility and as a result Indian market is becoming less attractive to the FII's'' He said the current political instability in the country may just fuel the crisis of investments and foreign investors may look at emerging markets like Brazil and China.

The dependency of the emerging markets like India and China on US markets may add to the woes of these markets.

''Tighter credit standards and higher credit costs will slow down US growth'' added Mowat.

However, fundamentals of emerging markets like India appear robust and the impact of the US credit problems will be limited, the report observed.

The report also observed that sectors like automobile, real estate, banking will feel the brunt of rising rate of interest by early part of 2008. However, the telecom and IT sectors will continue to perform better.

UNI