- India’s stock market is surging as a result of investments from foreign money and an increase in the number of small investors. A surge in the shares of banks and automakers has helped the MSCI India index increase by more than 7% this year.
- While the larger emerging market index has decreased by 2%, the MSCI China index has lost close to 11% of its value. The greatest sum ever for the time was $8.3 billion from foreign investors in Indian stock funds between January and August.
- Due in part to China’s attempts to combat COVID-19, the country’s stock market has outpaced China’s for the past three years. While some investors feel that the surge in stock prices this year has been too rapid, there has been inconsistent foreign investment in Indian equities.
- One of the main economies with the fastest growth rates in the world, the nation’s GDP grew at an annualized rate of 7.2% during its most recent fiscal year. Due to the focus on the economy, investors have chosen businesses with a distinct domestic focus, especially those that stand to gain from increased consumption.
- The increased interest of India’s small investors, who have rushed to the stock market since early 2020, is also helping the country’s stock market.
