Indian Economy may see Faster Economic Growth than China after, 2020:

Risk taking investors can use the declines to buy good stocks like, Ambalal Sarabhai Enterprise Ltd, Prajay Engineers Syndicate Ltd, Refex Refrigerants Ltd, XL Telecom and Energy Ltd, Sanguine Media Services Ltd. Yesterday, Indian market fellow primarily due to the following reasons:

1. Not so impressive results from some of the corporate heavy weights like ICICI Bank,  L & T, etc.

2. Banking shares reeling under selling pressure ahead of the Reserve Bank of India's monetary policy review meet on 29 January 2010.

3. The annual wholesale inflation rose to 7.31% in December 2009, compared with 4.78% in November and 6.15% a year ago. Food prices rose near 20% in December from a year earlier, their highest in 11 years. Finance minister Pranab Mukherjee said on Wednesday the government is taking steps to contain inflation.

However, let us look at the positive sides:

1. Reliance Industries Ltd is expected to come up with good results. 

2. Some of my recommended scrips are coming up with results soon. 

3. Hereto, barring one or two cases, the performance of India Inc. on the earnings front has been robust with aggregate results of around 315 companies showing an 90% surge in net profit on 13.7% rise in sales in quarter ended December 2009 over.

4. The markets are looking oversold on the hourly charts and hence a natural bounce is expected.

5. FMCG pivotals looks attractive as defensive bet, as the the market's slide entered third day.

6. The food price index rose 16.81% in the 12 months to 9 January 2010, while the fuel index was up 6.34%, the government said on Thursday. The rise in food price index was lower than an annual rise of 17.28% in the previous week.

10. The strong response from FIIs towards IPOs indicate that global liquidity remains ample.

NEW DELHI: The Indian economy is likely to grow at a faster rate than neighbouring China's after 2020, with the country primarily benefitting from a significant younger population, says a report by PricewaterhouseCoopers.

According to the report, China is expected to be the largest economy in the world as early as 2020. However, the Indian economy is likely to grow significantly faster than China in the decade after 2020, the report stated.

"This is due to India having a significantly younger and faster growing population than China and due to it having more 'catch-up' potential due to starting from a lower level of economic development than China at present," the report revealed.

PwC, however, cautioned that India would only fully realise this potential, if it continues over the next two decades to pursue the growth-friendly economic policies of the last two decades.

"In fact, India has the demographic potential to overtake China as the fastest growing major economy within the next 10 years," PricewaterhouseCoopers executive director and Markets & Industries leader Jairaj Purandare said.

Moreover, India is likely to become less dependent on outsourcing and more on manufacturing exports, building on its engineering skills and rising levels of education in general population over the next decade, the report stated.