Boston, MA 10/04/2013 (wallstreetpr) – Could India be the next destination for the US companies seeking global opportunities? The president and head of Bank of America Corp (NYSE:BAC) India, Kaku Nakhate, thinks so. Of course, India hasn’t been ranking high among overseas firms’ investment options, but the sliding rupee against the dollar is the reason the market is becoming attractive.
As a bank holding company, BAC has businesses and branches in the U.S. and internationally, and the company’s Indian chapter is billed as the top ranking in takeover consultancy issues.
That BAC is seeing hope in India is something that goes far beyond the bank’s interest. BAC is a reputable company by product and stock in the exchange market and giving India a clean bill of health is sure to excite other investors – corporate and individuals.
In figures, it is reported that rrupee is trading somewhere between 60 and 62 against the dollar. In fact, the currency has fallen by up to 16% in the trailing 12 months. Apparently, other than yen and rupiah, rupee is another worst performing currency in Asian.
For the U.S companies (and BAC knows this too well), another alternative outside China in Asia is a reasonable ground to invest. And because of its stable rules in matters taxes and land now, according to BAC’s Indian president, makes the third-largest Asian economy a promising place.
Perhaps something else is that the drop in rupee means low wages for investors. This is contrary to the situation in Bangladesh and China which are seeing labor strife.
As BAC makes its case about investment opportunities in India, the next few months might see a lot of restructuring among the U.S firms to get a piece of the Indian market.
For BAC, the last 52-weeks have seen its stock exchange $15.03 high and $8.91 low. The bank has a market cap of $150.40 billion and a P/E ratio of 31.85.
