With 8% gains YTD, India still underperforming in global bull race; will it catch up?

India Business News: Indian stock markets rally in 2023: In early 2023, Indian stock markets started on a tough note, experiencing a notable decline and reaching a 52-week

Foreign institutional investors (FIIs) are investing heavily in Indian stocks in the first quarter of FY24, with daily average buying totaling around Rs 1,400 crore. Domestic institutional investors (DIIs) have bought stocks worth only about Rs 6,500 crore in the same period. Experts suggest China's weakening economy has driven investors to India instead, with the country's growth potential and standing in the global market making it an attractive alternative. The Nikkei in Japan is up 30% this year and South Korea's Kospi is up 17.5%, while Refinitiv data shows foreign investors have sold $1.71 billion worth of mainland shares in China during May.

India's upcoming elections coincide with new trade agreements and surging economic indicators, including stock market highs and foreign investments. The economy's growth rate stands impressively at 8.4%, showcasing stability and potential for further development.

Equity benchmark indices began the trade on a weak note on May 24 following a bearish trend in the global markets as investors preferred to remain on the sidelines ahead of the release of the U.S. Federal Open Market Committee (FOMC) meeting minutes.

India Business News: NEW DELHI: Indian equity markets continue to draw foreign portfolio investments as foreign investors put in Rs 43,800 crore in July so far on stable m.

“While the Nifty50 has reached a significant milestone at 20,200, it's not necessarily indicative of a definitive ceiling. Several global factors, such as the stronger-than-expected global growth and the recent decline in global average inflation, suggest that equity valuations are less likely to face immediate pressures.”

The government expects the economy to grow 7.6% in FY24. Indias growth numbers released last month showed that the economy expanded 8.2% in the year's first three quarters.

If the single biggest reason for the summer rally of 2023 is FII flow, then probably the single biggest trigger for the flood of FII money is the U-turn in FII strategy from ‘Sell India, Buy China during January and February this year to ‘Buy India, Sell China during the last three months.

The numbers beat market expectations; however, the benchmark Sensex at the BSE fell 193 points or 0.3% on Thursday.

Having started 2023 on a bitter note and even hitting 52-week lows, Indian benchmark indices did a pole vault on Dalal Street that took them to the top 10 best performing markets in the world this year.