The Chinese market’s underperformance has been stark for many years now, said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
In early 2010, the Shanghai composite index was around 3,000. Now it is below that level at around 2,865: No return during the last 14 years. In sharp contrast, Nifty was around 5,000 in early 2010 and is now above 21,500, multiplying more than four times during 14 years, he said.
This contrast in performance is reflected in the valuations too; while Nifty is trading at above 21 times the estimated FY24 earnings, Shanghai composite is trading at only 11.5 times, Vijayakumar added.
The Chinese economy is going through difficult times with sharply slowing growth, rising unemployment and the real estate market in serious crisis. India will certainly attract more capital flows. The concern is the high valuation in India, he said.
All the emerging market indices saw negative performance in January with China being the worst performer at 10.6 per cent. As far as developed markets are concerned, Japan emerged as the best performer at 4.6 per cent, as per a report by Motilal Oswal Asset Management Company.
Nifty 50 declined by -0.03 per cent in January 2024. However, the index has shown positive growth since the past year, the report said.
Indian share market ends in red ahead of key global policy decisions
Ahead of key policy decisions especially from the US Federal Reserve, the Indian stock market closed in red on Tuesday as selling was seen in the PSU bank, auto, IT, financial service, pharma, FMCG, metal, and realty sectors of Nifty.
Buy on dips strategy working well in Indian stock market amid sharp rebound
The surge in the Indian stock market on Friday helped the Indian benchmark indices end the week on a positive note. A strong 2,000-point rebound from the lows suggests that the buy-on-dips strategy is working well in the market, experts said on Saturday.
India’s GDP growth to hold steady in FY25, likely to clock 6.7 pc in FY26
India's economic growth will continue to hold steady in FY25 despite global uncertainties, with a projected GDP at 6.7 per cent in FY26, a report showed on Friday.
Sensex closes at 82,133 after 2,000 pts rally from day low
According to the experts, "Currently, the market is anticipating a revival in consumer spending, driven by the festive season and year-end holidays, adding to the sentiments. Additionally, an expectation of an increase in the US spending is propelling the IT sector."