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[hfe_template id='11223'] [ad_1] Synopsis In the initial days of the correction in October 2024, the narrative was that a “sell India, buy China" trade was underway. Chinese markets were cheap, or so went the narrative, and with a likely economic recovery, its stocks were attractive. Later it transpired the trade was essentially “move out of emerging markets and go back to the US”. But because of the China narrative, October-November saw metal stocks outperforming the market. Yesterday, there was another round of optimism, with news from China suggesting strong GDP numbers. Is it posturing before the trade war with the US gets serious? Or is there real change on the ground? Given China’s non-transparent information architecture, one may be skeptical. But it is possible that the Dragon may dance again. What is the best way to play any likely Chinese economic recovery? Simple, really: Buy metal stocks. Metal prices spike when demand rises in China. But the question is...

[hfe_template id='11223'] [ad_1] Synopsis In October, the big dip in the Indian market was triggered by a single factor – China. The country, to revive its economy, was set to come out with a stimulus package. And as valuations in China were cheaper than in India, FII money was being redirected there. The sharp rise in the Chinese stock market gave credence to this narrative. Now, because China is a metal guzzler, all metal stocks performed very well in that phase, even as most other sectors saw sharp cuts. But when the Chinese stimulus package turned out to be underwhelming, the metal stocks plunged. The question now is: Was the initial China stimulus a trial balloon floated ahead of the US elections? Will the real one come once the new US president is done with his tariff tantrums? Will the dragon finally perform this time? This is the question the street has been grappling for quite some time. The China stimulus to revive its economy was the key reason for the Indian ...