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India’s Stock Market Valuation Hits Record High Ahead of G-20 Summit

India’s Stock Market Valuation Hits Record High Ahead of G-20 Summit


Bloomberg – A record stock-market valuation and surging foreign inflows make for a great backdrop as Prime Minister Narendra Modi looks to tout India’s growing prominence to world leaders at this weekend’s Group of 20 summit in New Delhi.

Positive Milestones

  • India’s equity benchmark is approaching an all-time high.
  • India’s milestones contrast with many emerging-market peers, including China.
  • Developing-market money managers are most overweight on India in their Asia portfolios.

Factors Contributing to India’s Outperformance

  • Strong domestic growth prospects
  • Ongoing policy reforms
  • Robust credit growth
  • Shift to a multi-polar world

Foreign Inflows and Investments

  • Foreign investors have bought more than $16 billion worth of Indian stocks on a net basis in 2023.
  • India stands out as overseas funds sold shares in other Asian emerging markets.
  • India is the market of choice for global head of equity strategy at Jefferies LLC.

India’s Potential Challenges

  • Resurgent crude oil prices
  • Inflation dynamics
  • General election in April-May
  • Infrastructure improvements
  • Job creation

Positive Outlook

  • India is one of the biggest equity overweights at Columbia Threadneedle Investments.
  • India could be the biggest winner in the near-shoring boom.
  • India’s NSE Nifty 50 Index has outperformed the broader MSCI Emerging Markets Index.


India’s stock market valuation hits a record high, showcasing the nation’s potential as a geopolitical juggernaut. With a strong economy, solid corporate earnings, and an attractive investment environment, India is becoming a safe haven for global investors. However, challenges such as inflation and infrastructure improvements need to be addressed for sustained growth.

©2023 Bloomberg L.P.

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