Business Standard

Indian bond, equity markets decoupled; see 30% downside in Nifty50: CLSA

The decoupling of Indian equity markets, this year, from the global markets has been remarkable. While the S&P 500 has lost over 20 per cent in CY22 so far, the Nifty50 index is marginally in the red

stock markets
Web Exclusive Premium

Puneet Wadhwa New Delhi
Global research and broking house CLSA sees a 30 per cent downside in Nifty50 from the current levels, even as it believes that the Indian bonds and equity markets have decoupled from their global peers. 

“The difference between 10-year Indian and US G-Sec yields has fallen to a 13-year low of 3.3 percentage points (ppt). This, along with a near-record Indian equity valuation premium to peer markets as well as to domestic bonds, indicates a kind of decoupling for Indian bonds as well as equity markets,” wrote Vikash Kumar Jain of CLSA in a recent note.

ALSO READ: 

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Sep 29 2022 | 12:32 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com