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

Mumbai’s Street MBA: How A Bag Hustle Became A ₹8 Lakh Business

A Mumbai auto driver earns up to ₹8 lakh per month by offering a simple…

1 hour ago

Five Districts In Manipur Face Internet Shutdown Following Unrest

Manipur suspended internet in five districts for five days after protests over arrest of a…

2 hours ago

Shashi Tharoor Criticises Pakistan: “In Pakistan You Get Rewarded For Promoting Terrorism”

Shashi Tharoor condemns Pakistan’s treatment of Dr Shakil Afridi, who helped the US locate Osama…

2 hours ago

How To Read Food Labels & Make Smarter Grocery Choices

Reading food labels helps you make informed, healthier choices by understanding nutrition facts & picking…

3 hours ago

JP Nadda Slams Rahul Gandhi’s ‘Match-Fixing’ Claims As ‘Desperation Of Losing’ Polls

Rahul Gandhi's opinion piece appeared in a national daily and sparked political uproar. Opposition parties…

15 hours ago

Poverty In India Reduced Via Tangible Boost In Household Living Standards, Incomes

In 2022–23, poverty under the revised $3.00 line stood at just 5.25 per cent in…

15 hours ago