Growth Haven: Stocks in India See Record High Performance1-min read

After emerging as an ironclad during this year’s global equity crisis, stocks in India are now geared to expand atop global rivals and finish 2022 at a.record high. The return of foreign investors is propelling the market, with the benchmark S&P BSE Sensex Index which reached an all-time peak on 11th November as risk assets celebrated over a weaker US inflation reading. An unparalleled retail investing explosion, robust domestic demand that has permitted one of the world’s highest growth rates, and political stability have all contributed to India’s decoupling from other developing economies.

“Amid the global market cacophony nowadays, India is conveying the right signals,” said Vikas Pershad, portfolio manager for Asian equities at M&G Investments (Singapore) Pte. “Whether measured in absolute or relative terms, there is still plenty to appreciate about the opportunity set in India.” We see a significant likelihood of continuing outperformance.”

In a time of great turmoil, is India rising up as a bastion for prosperity?

The Sensex is on track for its seventh consecutive yearly gain, up 6.1% this year. Its rise is the largest among benchmarks in nations with stock markets worth at least $1 trillion, compared to a 23% drop in the MSCI Emerging Markets Index. 2022 sees an 18% decline in the MSCI All-Country World Index.

While domestic market capital aided in cushioning the market earlier this year despite a record international flight triggered by the Federal Reserve’s aggressive rate rises, equities have come on leaps and bounds since the year’s lows in June as offshore investors gradually returned. Investors’ confidence in the economic recovery has also increased as a result of the most recent quarter’s strong profits.

India also just surpassed the United Kingdom to become the world’s fifth-largest economy. According to a recent Bloomberg News study, GDP is expected to grow 7.0% in the fiscal year 2023.

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