Business

Indian Stock Market Shows Resilience Amid US Economic Slowdown

In a recent analysis, Jefferies highlighted the resilience of Indian benchmark indices in the face of a slowing US economy, particularly as the Dow Jones Industrial Average experienced its worst day in nearly two years.

Christopher Wood, Jefferies’ Global Head of Equity Strategy, noted that the risk of a US economic downturn has significantly increased. However, he pointed out that the Indian stock market is demonstrating a remarkable ability to withstand the effects of a US downturn and the associated Wall Street sell-off, outperforming markets like Japan.

Also Read: Musk Criticizes San Francisco ‘Impossible’ For Payment Processing Companies

The latest US employment report revealed that only 114,000 jobs were created in July, falling short of the anticipated 175,000 new positions. Additionally, the unemployment rate rose to 4.3%, marking its highest level in almost three years.

Contrastingly, India’s stock market exhibited robust performance, recovering swiftly on Tuesday after a brief dip on Monday. This resilience is attributed to strong domestic market fundamentals, which have helped shield the market from broader global uncertainties.

Wood commended the Indian market’s ability to remain stable and noted that it remains an attractive investment destination. He expressed gratitude that approximately 26% of his GREED & Fear global long-only portfolio is invested in India, reflecting confidence in the country’s equity market.

Domestic Investors

India’s domestic investors have played a crucial role in supporting the stock market. On Monday, domestic institutional investors (DIIs) purchased equities worth Rs 9,155 crore, countering the selling pressure from foreign institutional investors (FIIs), who sold equities amounting to Rs 10,073 crore.

Foreign portfolio investors (FPIs) continued to show confidence in the Indian market, injecting Rs 54,727 crore into equity and debt in July. For the year to date, FPI investments in Indian equities have totaled Rs 35,565 crore.

Overall, the Indian stock market’s resilience amidst global economic challenges underscores its growing strength and attractiveness to both domestic and international investors.

Richa Kaushik

Recent Posts

Rouse Avenue Court To Rule On AAP Money Laundering Chargesheet On November 6

The ED submitted the first supplementary chargesheet of 110 pages on October 29. It alleges…

1 hour ago

Allahabad HC Rejects Exemption Request From Additional Chief Secretary Due To Chief Minister’s Program

The court stated that proceedings should not delay because of any constitutional officer's schedule. However,…

2 hours ago

Court Directs ED To Provide Charge Sheet Copies To Accused In Delhi Liquor Policy Case

During the proceedings, the ED requested more time to share copies of digital records, remaining…

2 hours ago

Mahakumbh 2025: Google Maps To Guide Devotees For The First Time

Google has modified its policy to include Mahakumbh, recognizing the event's significance and massive turnout.…

2 hours ago

Yogi Government Eases FDI Policy To Boost Foreign Investment In Uttar Pradesh

During a cabinet meeting on Monday at Lok Bhavan, the state approved changes to the…

3 hours ago

Tribute Meeting To Honor Martyrs Of 1966 Cow Protection Movement

Yuva Chetna will organize a tribute meeting to honor martyrs of the 1966 cow protection…

3 hours ago