Mumbai:
The Indian stock market has become the first in the world to successfully erase all losses caused by the mutual rate announcement of Donald Trump. The stock market in the financial capital of India, Mumbai, gathered today as a trade after a long weekend – Monday a holiday for Ambedkar Jayanti.
The National Stock Exchange of NSE Nifty 50 -Index rose no less than 2.4 percent in Mumbai during the trade session today, so that the index was reduced to the level it was on 2 April, when President Trump signed the executive order at rates.
According to a Bloomberg report, global investors mention Indian markets as “relatively safe” in the midst of global volatility about the punitive move of Trump on both friends and enemies.
How India is different
However, those mutual rates are currently on “break” for all countries except China – the primary opponent of the US. A collision between the two largest economies and two of the world's largest manufacturers is sufficient for the global markets to brace themselves to impact.
With a population of more than 1.4 billion people and large domestic investors, the Indian markets have a much better capacity to withstand a potential global recession, the report explained.
Speaking with Bloomberg said Gary Dugan, CEO of the Global CIO office: “We remain overweight India in our portfolios.” He further explained that Indian markets, which are “supported by good domestic growth and helped by a likely diversification of supply chains away from China, are seen as a safer gamble in the medium term.”
China at a weapon distance
The Indian markets have kept Chinese investments at a distance and every major impact on China has a minimal impact on India compared to other markets in the world. With the fast -growing trade war between America and China, the Indian markets and India have come under the global spotlight as an investment destination.
The India production sector has also risen at a rapid pace and the country is now seen as an alternative production hub to China. While Beijing has taken the retaliation route and has opted for a trade war with Washington, New Delhi has adopted a much more reconciling tone. India and the United States are located at an advanced stage for a 'win -win' trade agreement – a movement that has seen the rest of the world as a much adaptive and flexible stand compared to China.
Revival of the Indian markets
The revival of India follows a malaise of almost 10 percent in the stock benchmark in the past two quarters. The sale had reached a highlight after President Trump had dropped the 'bomb' rate, but a few other factors include a marginal dip in the growth riveting and high ratings.
According to Bloomberg, overseas funds have sold this year for more than $ 16 billion in local shares. This compared to 2022 – the year that the maximum admission saw at $ 17 billion.
The Reserve Bank of India or RBI – the Central Bank of India – the interest rates after the Tarief Movement of Trump. This is also based on the trust of investors in the country.
Tank oil prices on the international market are another reason for a positive sentiment from investors in India, which is a large nation of rough importing.
What the data see
According to data collected by Bloomberg: “The Nifty 50-benchmark is currently being traded 18.5 times the estimate of 12 months in advance, compared to the five-year average of 19.5 times and a multiple of 21 times on its peak at the end of September.”
Another data set that has been compiled by the news agency shows that India is much better isolated from rates, good for only 2.7 percent of total American import compared to China at 14 percent and Mexico by 15 percent.
(Inputs and data by Bloomberg)
