India Struggles to Shake Off Pessimism After $1.3 Trillion Rout.
Global fund managers are in no rush to load up on Indian stocks even after an unprecedented losing streak has lowered equity valuations.
The sentiment illustrates how the highly touted stock rotation from China to India has gone into reverse as growth in the South Asian economy returns to a relatively slower pre-Covid norm amid a decline in consumption. Overseas investors have pulled almost $15 billion from local shares so far this year, putting outflows on track to surpass the record $17 billion registered in 2022. The selloff has wiped out $1.3 trillion from India’s market value.
India’s benchmark NSE Nifty 50 Index is trading at 18 times forward earnings, compared with 21 times in September. But despite the drop, the market’s multiple remains higher than that of all its emerging Asian peers.
Latest government figures show India’s economy will expand at a four-year low of 6.5% in the current fiscal year. Some analysts expect growth in the coming years to remain well below the nearly 9% average seen in the past three years.
Source: FINANCE.YAHOO
