Stocks in India are moving in tandem with their US peers at the fastest rate since early 2021, with a 30-day correlation coefficient measure between the NSE Nifty 50 and S&P 500 indices recently hitting 0.68 out of 1.
India’s blue-chip gauge is up almost 5 percent this month, compared with 4.6 percent for the S&P 500 and 0.33 percent for the MSCI Asia Pacific, the latter weighed on concerns over China’s economic growth and Covid-19 balance sheet became.
The softening inflation outlook – particularly fueled by energy – and the Fed’s rate hikes could be connecting points as foreign institutional investment outflows from Indian equities ease in July.
“Pop culture scholar. Subtly charming beer specialist. Reader. Student. Devoted music advocate.”