5 things you need to know about Indian stocks
5 things you need to know about Indian stocks
indian stock market It is moving towards a new high overtaking the Chinese stock market that has continued to decline. because of the outbreak of COVID-19 While India has a heavy outbreak as well. But foreign investors are bringing investment from China to India. causing the index to make a new high as follows:
1. Chinese stocks and Indian stocks have low correlation.
In the past 5 years, the main stock indices of both countries have always run in the opposite direction. compared to other stock markets in Asia This makes Indian stocks have the lowest correlation with Chinese stocks. This is because most Indian stock indices focus on domestic consumption. and export the software that has nothing to do with China while other stock markets like Taiwan and South Korea have links with China
2. India has become a new destination for investors.
Because the Indian stock market was the most profitable in 2021 driven by the financial, utilities, industrial and luxury sectors. The government and banks continue to stimulate the economy and push for reforms. This allows foreign investors to benefit from their initial investment.
3. Top 3 Indian Stock Funds with Outstanding Historical Performance
Indian stock funds with an average 1-year return of 48.3% and an average 3-year return of 10.45% have 3 ranks:
- B-BHARATA
- ASP-INDIA
- TMBINDAE
4. The Indian stock market continues to set new records, causing the valuation to be too expensive.
Investors are becoming more cautious about investing in India. Because the value of Indian stocks is too expensive compared to the average P/E 10 years ago, which was 21 times.
5. Watch out for some capital flowing back into China.
There are already signs from the Chinese stock market after JD.com misrepresented strong earnings. This, along with the comments of American billionaire investor Ray Dalio, said that Chinese stocks should be an important part of a portfolio. That's causing capital to start flowing back into China.
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