You are here: Home » Opinion » Editorial » Editorials
Foreign trade: Going beyond a phrase
India's national priorities are best served domestically
Business Standard

Indian equities' short-term outperformance

There's no dearth of high-quality corporate stories to keep investors interested, but a drop in valuations is likely if the international outlook worsens further

Topics
Indian equities | Indian equity market | BSE NSE

Business Standard Editorial Comment  |  Mumbai 



Every major stock market has suffered net losses over the last year, but the Indian market has suffered less than most others. The S&P 500 index—the broad gauge of the US stock markets— is down 17 per cent. Frankfurt’s DAX index is down 21 per cent. The Shanghai Composite is down 15 per cent. But the Nifty is down only 4 per cent and even its US dollar-denominated twin, the Defty, is down only 12 per cent despite the depreciation in the rupee during this period. Is there a clear explanation for the relative outperformance of Looking a little deeper, this strength appears to be based on the optimism of domestic institutional investors. While the foreign portfolio investors have sold Rs 1.85 trillion worth of equity over the last 12 months, and retail investors have been net sellers in direct equity, domestic institutions, including mutual funds, have bought a net Rs 3.1 trillion, which has been enough to almost balance the selling pressure.

TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH.

SUBSCRIBE TO INSIGHTS

What you get on Business Standard Premium?

  • icon Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • icon Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • icon Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
  • icon Pick your 5 favourite companies, get a daily email with all news updates on them.
  • icon 26 years of website archives.
  • icon Preferential invites to Business Standard events.

OR


Subscribe to Business Standard Premium

Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!

Insightful news, sharp views, newsletters, e-paper, and more! Unlock incisive commentary only on Business Standard.

Download the Business Standard App for latest Business News and Market News .

First Published: Wed, September 28 2022. 22:11 IST

RECOMMENDED FOR YOU

.