Indian money managers believe the country's stock market will recover once the uncertainty ends over who will become the country's next prime minister and foreign investors come back. Prime Minister P.V. Narasimha Rao, whose Congress party instituted the 1991 economic reforms that opened up the country to foreign investors, is in a tight race. The elections are in April.
Ajai M. Kaul, country manager of the Bombay-based Alliance Capital Asset Management, said in a report to investors he expects foreign investors to start buying Indian stocks ahead of the elections and that money will move into India ``as investors relook at emerging markets and at the underperforming markets of 1995.'' The Bombay Stock Exchange's broad-market index fell more than 28% last year.