Prudential Financial Inc., the insurer that manages more than $1 trillion of investments, is set to commit more funds to emerging markets after the sector’s main index slumped and developed-country stocks rallied.
The rally in Indian stocks that’s driven the benchmark index toward its record will falter as higher interest rates curb economic growth, according to Prudential International Investments Advisers LLC.
South Korean stocks may extend their longest rally in five years as “modest” increases in interest rates will slow inflation without damaging economic growth, according to Prudential International Investments Advisers LLC.
John Praveen , the Newark, New Jersey-based chief investment strategist at Prudential International Investments Advisers LLC, which oversees $750 billion in assets, comments on his outlook for Indian stocks. Prudential is a money manager in India through its local unit, Pramerica Asset Managers Pvt. Praveen gave his comments in an e- mail interview.
Overseas funds are raising holdings in India’s state-controlled companies to a two-year high as Prime Minister Manmohan Singh’s government sells stakes and attracts investments to revive the weakest economy in a decade.
Large investors led by the Life Insurance Corp. of India, and executives at the biggest Indian companies are selling the most shares since 2010 just as foreigners plow record funds into the nation’s equity market.
U.S. stocks rallied, sending the Standard & Poor’s 500 Index to the biggest advance in three months, amid improving global economic data and on investor speculation of a larger European financial rescue.