India** topped $4 trillion for the first time on Tuesday, with the market capitalization of listed companies increasing by $1 trillion in less than three years. India's main benchmark index has surpassed 13% this year, hitting an all-time high and on track for an unprecedented eighth consecutive year.
Ashish Gupta, co-chief investment officer at AXIS, said that India has shifted from a consumption-led economy to one dominated by both consumption and investment, and "the market has reacted positively and correctly to this potential strength of the country".
India's young demographics and Prime Minister Narendra Modi's quest to capture a larger share of the global ** chain have attracted companies such as Apple to India. Meanwhile, institutional investors such as global pension and sovereign wealth managers are flocking to India, according to a new study from the Forum of Official Monetary and Financial Institutions, a London-based think tank. This year, $15 billion has been injected into India** from overseas**.
Against the backdrop of a global macroeconomic slowdown, India's economic growth stood out, with GDP growing 7.2 percent year-on-year in the three months to September6%。Goldman Sachs Group Inc. last month upgraded India** to "overweight", calling it "the country with the best structural growth prospects in the region". Nomura Holdings maintained its overweight recommendation on India in its latest Asia ex-Japan strategy report.
India will be held next year**, and Prime Minister Narendra Modi's ruling party has so far won three key state elections. This boosted market sentiment and boosted India's attractiveness to foreign investors, who became local** buyers for the first time in three months in November. Investors believe that political risk has decreased, increasing their bets on policy coherence.
Nomura strategists, led by Chetan Seth, wrote in a note on Tuesday: "Structurally, if there is coherence in political policy, we will be on dips." JPMorgan strategists led by Rajiv Batra wrote in a Nov. 30 note: "In addition to structural commitments, we believe factors that will drive the market higher in the near term include strong economic activity data, impressive corporate earnings, oil prices**, and strong domestic inflows." ”
India's risk may come from its high valuation. Some investors have expressed concerns about overvalued markets and overcrowded deals in India, increasing the likelihood of **. At the same time, the rising participation of individual investors, many of whom heeded the advice of unauthorized financial advisors and social ** "experts", became a concern for market regulators.
This article is sourced from: the financial world.