India struggles to shake off pessimism after $1.3 trillion stock market rout
[hfe_template id='11223']
[ad_1]
Global fund managers are in no rush to load up on Indian stocks even after an unprecedented losing streak has lowered equity valuations. That’s because the market is still grappling with challenges posed by an economic slowdown, profit downgrades and potential US tariffs. Traders looking for bargains within Asia are gravitating toward still-cheap Chinese equities, which are in the middle of a bull run sparked by developments in artificial intelligence. The sentiment illustrates how the highly touted stock rotation from China to India has gone into reverse as growth in the South Asian economy returns to a relatively slower pre-Covid norm amid a decline in consumption. Overseas investors have pulled almost $15 billion from local shares so far this year, putting outflows on track to surpass the record $17 billion registered in 2022. The selloff has wiped out $1.3 trillion from India’s market value. “Global investors would need to see sustain...