A positive turn in sentiment for the modern Indian art market

The combined auction sales for Indian art raised a good $15.2 million (roughly Rs 69.3 crore) in March 2010, pointing to a rise in buyers’ confidence level. Sales of leading world auction house Sotheby’s well illustrate this: Its auction of Indian & Southeast Asian art in NY logged more than $8 million, whereas its auctions in March and September 2009 had realized just about $3.32 million and $3.75 million, respectively.

The all-important Indian Art Market Confidence Indicator (comprising both modern & contemporary art) monitored by ArtTactic shot up 26% to 62 now from 49 in October 2009.; This implies that there is far more positive than depressingly negative sentiment for the first time in last six months in the Indian art market. The 50 mark suggests that there are an equal number of negative and positive responses on the short term outlook for the art market.

A highlight of the report is the widening gap in confidence between the contemporary and modern Indian art market. The Modern Confidence Indicator for Indian art is almost 51% higher than the equivalent contemporary art confidence indicator. The analysis reasons that the reasonably established nature of the modern market has created a serene sense of ‘safe haven’ for a section of buyers, leading to its expansion.

At the onset of the art market downturn globally in late 2008, the modern art market of India saw a drop in confidence. But compared with most other emerging markets, the fall was rather modest. The new survey notes that more than 70% of the people surveyed believe that art prices have now stopped dropping in the modern art market of Indian.

This is a significant positive turn in public sentiment from the previous reading in October 2009. Then 61% of respondents felt the modern Indian art market would encounter further downward heat on prices. Anders Petterson, ArtTactic managing director made special mention of a ‘significant pick-up in subscribers during the last one year’.