Waiting for a Festive Mood to Boost the Markets
The Indian equity market remains a beacon of hope amidst gloom in the global markets given that Europe is seen as a bad bet and the US may only make a comeback next quarter while China is gripped by a ‘zero virus’ policy. Meanwhile, a relentless drop in China’s stocks has boosted the appeal of their biggest emerging market rival India, spurring a divergence that’s rarely been seen before. The MSCI India index rallied almost 8.5 per cent in the quarter ended September, 2022, compared to a 19.5 per cent slump for the MSCI China index. As a result, the 28-percentage point outperformance by the India gauge is one of the biggest since March 2000.