Indian markets defy bears and push to new records | News Bharat

Alessandro Albano – We’re not talking about the S&P 500, Euro Stoxx 50 or Hang Seng, but the BSE Sensex 30 and Nifty 50, two Indian equity benchmarks that hit record highs in recent sessions despite rising interest rates and The deteriorating global economy has caused major Western indices to fall in 2022.

The Sensex added 0.3 percent to a new high after closing at 62,508.80 on Monday, while the broader NSE Nifty added 0.3 percent after hitting an all-time high of 18,562.75 at the close.

According to several analysts, the buying on the Mumbai bourse was due to a fresh influx of liquidity from Western investors who, concerned about political and economic processes in China, decided to turn to India as a new outlet for Asia-Pacific markets.

Corresponding to this is an economic reality that seems to be far from the West, with many countries struggling not to enter the recession phase, and the energy crisis seems to have no other solution than to continue to raise interest rates.

After a boom of +8.7% in 2021, real GDP is expected to end the year at 6.6%, according to the IOCSE, while growth is expected to be +5.7% in 2023.

Added to this, inflation is 6.8% in 2022 (OECD estimate), +5.0% next year before slowing to +4.3% in 2024, partly due to the government’s choice to increase imports of crude oil and other cheap energy from Russia commodity.

This is quite different from what has been observed, for example, in the Eurozone where the harmonized HCPI is expected to be +8.3% this year and 6.3% by the end of 2023.

Prime Minister Modi’s country has also seen a rise in foreign investment, similar to countries in Southeast Asia, thanks to anti-COVID restrictions imposed by China that have effectively forced Western (and other) entrepreneurs to take their operations elsewhere, lest they lose money in exports and In terms of supply chain accessibility, it loses exposure in the macro region.

“The medium-term outlook for the Indian market remains positive as the structural growth dynamics of the Indian economy remain intact and India’s macroeconomic parameters remain resilient to the challenges of the global economy,” said Hemant Kanawala, executive vice president and head of equities at Kotak Mahindra Life Insurance Company.

Manoj Purohit, Partner and Head, Financial Services Tax, BDO India, said, “Compared to other emerging and developed markets, foreign investors continue to be optimistic about the Indian market, as evidenced by the steady buying trend since October 2022.”

Purohit added: “The success of Indian equities in attracting foreign investors has also been attributed to the steady performance of the Indian economy despite global headwinds from the ongoing military war, volatile interest rates and recession fears that are knocking on the door. “

The reviews were compiled by Indian broadcaster NDTV.

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