For instance, following the Bank of Japan’s decision to raise its key interest rate to 0.25% from near-zero to counter the yen’s decline against the US dollar, most Asian markets fell between 4% and 11% in the last five trading sessions. In contrast, the Nifty dropped 3.8%.
“Indian markets have shown resilience on the back of strong economic growth and an healthy growth in corporate earnings,” said Gaurav Dua, head of capital market strategy at Sharekhan. “In addition to fundamentals, the strong domestic inflows have also supported the Indian equity market.”
Domestic institutions led by mutual funds have invested nearly ₹7.34 lakh crore in equities since 2022, while foreign institutional investors have sold shares worth ₹85,000 crore in the same period.
Between April 1 and April 17, indices such as the Dow Jones, Nasdaq, Nikkei, and Kospi fell 4- 6%, while the Nifty was down just 1.4%.
Similarly, in the period between October 17 and October 27 of 2023, when the Nasdaq, Dow Jones, Nikkei, and Kospi declined by over 4%, the Nifty fell 2.3%.
“The underlying ability of the Indian economy to decouple from the rest of the EMs,” said Satish Menon, executive director, Geojit Financial Services. “The outlook for corporate earnings and the stock market appears promising.”