The markets were under pressure on Monday, with most indices losing ground, as a result of the rising number of Covid cases in China and the response from the populace to the Zero-Covid policy. Indicators in Hong Kong/China and Tokyo both finished lower. The morning session sees lower trading on the European market as well.
Instead of the S&P 500, Euro Stoxx 50, or Hang Seng, we are discussing the BSE Sensex 30 and Nifty 50, two Indian equity benchmarks that recently reached new all-time highs despite rising interest rates and a weakening global economy, which will cause major Western indexes to fall in 2022.The Sensex is making new highs after ending at 62,508.80 points on Monday. The broader NSE Nifty, which reached a record high at the finish of 18,562.75, has also increased by 0.3%.
Several analysts claim that the buying on the Mumbai exchange is the result of a recent influx of liquidity from Western investors who have chosen India as a new outlet due to their concerns regarding China's political and economic course.
The IOCSE predicts that real GDP will grow by 6.6% at the end of this year after a boom of +8.7% in 2021, while growth is predicted to be +5.7% in 2023.
Additionally, according to OECD forecasts, inflation will reach 6.8% in 2022, then rise to 5.0% the following year before dropping to 4.3% in 2024, in part as a result of the government's decision to increase imports of Russian oil and other affordable energy products.
This is very dissimilar to what is seen, for instance, in the euro area where the harmonised HCPI is predicted to increase by 8.3% this year and 6.3% by the end of 2023.
Similar to countries in Southeast Asia, the nation headed by Prime Minister Modi has seen an increase in foreign investment. According to Hemant Kanawala, executive vice president and head of equity at Kotak Mahindra (NS:KTKM) Life Insurance, "the outlook for Indian markets remains positive in the medium term, as the structural growth drivers of the Indian economy are intact and India's macroeconomic parameters remain resilient to the challenges of the global economy."Foreign investors continue to "remain enthusiastic about Indian markets compared to other emerging and developed markets, as indicated by the consistent buying trend witnessed since October 2022," according to Manoj Purohit, Partner and Leader – Financial Services Tax at BDO India.
The Indian stock market has been successful in luring foreign investors, and credit for this success goes to the Indian economy's consistent performance in the face of global headwinds like the ongoing military conflict, fluctuating interest rates, and
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