Indian stock markets have been ahead of most emerging markets in 2018. India is set to offer attractive returns as earnings recovery pulls in foreign investors.
DOMESTIC INDICES failed to perform well in dollar terms for the better part of 2018 because of the sharp rupee plunge in a deteriorating macro environment. Things, however, have changed dramatically in the past three months. Oil prices, which rose to over $80 a barrel in the first six months or so of 2018, started trending lower in the latter half of the year.
India has not just outperformed other emerging markets (EMs), it also attracted the highest ETF flows among EM peers in December. This — amid concerns about the strength of the US economy, and an expected slower pace of rate hikes by the US Federal Reserve — has pushed the rupee higher against the dollar, raising market returns for foreign investors. Add to this resilience in the domestic markets of late, and Indian equities look good among EMs. This has been evident in foreign portfolio investment (FPI) buying in the last two months.
At a time when most global markets were in the red, the Sensex delivered a 3 per cent return in the December quarter. The MSCI EM index fell 8 per cent and the MSCI World index fell 14 per cent during the period. Stock markets in Brazil (15 per cent), Indonesia (6 per cent), and the Philippines (5 per cent) were the only three markets that fared better. Note that the returns in India were made even as FPIs sold a massive 29,000-odd crore of domestic equities in October. This was the same month that the rupee started reversing its losses against the dollar. Analysts say if domestic currency stays in the 70-72 range, India, pegged to remain the fastest growing major economy, may keep attracting foreign money.
Denne historien er fra February 10, 2019-utgaven av Business Today.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra February 10, 2019-utgaven av Business Today.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Pension Scheme - Safety Net
The move to introduce the UPS has evoked mixed reactions. Analysts believe its funding will have limited impact on the fiscal math
The Reit Choice?
Real Estate Investment Trusts (Reits) Are Gaining Traction As Interest Rates Stabilise. But Returns Could Be Affected By Adverse Economic Conditions And Market Volatility
CORPORATE - Calling to Account
The sudden exit of Byju's auditor BDO marks the latest in a long series of setbacks for the edtech firm
EMPLOYMENT: Skills Push
The skill development ministry plans to partner with the UGC to improve the employability of undergraduates
Building on a Vision
L&T'S CHAIRMAN EMERITUS A. M. NAIK HAS BUILT A MAMMOTH ENTERPRISE THAT IS BUILDING A NEW INDIA, FROM ITS METRO RAIL SYSTEMS TO THE RAM TEMPLE
"KYS more important than KYC"
Vijay Kedia is a renowned equity investor; the value of his listed portfolio stands at around ₹1,750 crore
ROXX STAR
THE THAR ROXX COMBINES LUXURY WITH PERFORMANCE TO MAKE A STRONG STATEMENT IN THE MID-SIZE SUV SEGMENT
HIT THE GROUND RUNNING
Smartwatches have become indispensable tools for runners, offering real-time insights into pace, distance, heart rate, and more. Here are a few you can consider
TURNING THE TABLES
INDIA'S FURNITURE MARKET IS POISED FOR A GLOBAL TAKE-OFF. ALREADY, A HOST OF GLOBAL BRANDS HAVE MADE THE COUNTRY THEIR HOME, BUT INDIAN COMPANIES ARE NOT TOO FAR BEHIND
THE EVOLUTION OF ATHERA
IDENTIFYING OPPORTUNITIES IN ADVANCE HAS STOOD THIS BENGALURU-BASED VC FUND IN GOOD STEAD. NOW, WITH A HEIGHTENED FOCUS ON TECHNOLOGY, IT WANTS TO SUSTAIN THE SUCCESS