Business sentiment suffers across Asia but India Inc most optimistic after Narendra Modi's election: Survey

Despite a fall in overall business sentiment across Asia after the slowdown in China and Singapore, India Inc is still riding high on optimism with a latest survey showing it topping the optimism chart.

Domestic companies are the most positive with a maximum score of 100 for the second consecutive quarter after Narendra Modi was elected Prime Minister, according to Thomson Reuters/Insead Asia Business Sentiment survey released here today.

The survey polled 15 domestic companies and all of them are positive about their outlook. This is in sharp contrast to the steep fall in business sentiment among Asia's top companies in the third quarter, weighed down by worries about Chinese slowdown, an end to the US Fed's stimulus and a decline in the outlook for regional economic hubs like Singapore, the survey said.

The sentiment index fell to 66 in the third quarter from 74 in the previous quarter as a whole in Asia, its steepest decline in three years, it added. However, it is still positive as a reading above 50 indicates an overall positive outlook.
While Thailand is the second most positive with a score of 90, the worst sentiment is in Taiwan, which scored only 33, while China dropped to 50 from 67 and Singapore also showed a sharp drop from 67 to 50.

The survey pooled 200 of Asia-Pacific region's top companies in 11 economies across sectors including financials, property, resources and technology between September 1 and September 12.

Of the 120 companies which responded, 64 % reported a neutral outlook, while 34 % said they had a positive outlook and 1.67 % were negative.