Accelerating government divestments could help address the imbalance in India’s equity market by expanding the investable universe, easing valuation pressures and reducing incentives for foreign capital outflows, according to Axis Capital.
In a report titled “Strong divestments can support capital flows and fiscal aims”, Prateek Ancha, Chief Economist at Axis Capital, said a sustained divestment programme could expand the investable universe, deepen market free float and generate substantial receipts for the government.
