indian stock market Has continuously worked in giving excellent returns to investors in the last 14 years. At the same time, the returns of the Chinese market have reduced to zero during this period. Let us tell you that in the beginning of 2010, the Shanghai Composite Index was around 3,000. It is now below that level at around 2,865. There were no returns during the last 14 years. In sharp contrast, the Nifty was around 5,000 in early 2010 and is now above 21,500, a more than four-fold increase in 14 years. V.K., chief investment strategist at Geojit Financial Services. Vijaykumar said this.
Impact visible on market valuation
This contradiction in performance is also visible in evaluation. Vijayakumar said that while the Nifty is trading above 21 times its FY2024 estimated earnings, the Shanghai Composite is trading at only 11.5 times. All emerging market indices performed negatively in January, with China being the worst performer at 10.6 per cent. According to a report by Motilal Oswal Asset Management Company, as far as developed markets are concerned, Japan has emerged as the best performing country with 4.6 percent. Nifty declined by 0.03 percent in January 2024. However, the index has seen positive growth since last year, the report said.
This is the reason for the poor performance of the Chinese market
The Chinese economy is going through difficult times. There is a huge decline in growth rate, increasing unemployment and the real estate market is in serious crisis. India will definitely attract more capital inflows. He said, the matter of concern is the high valuation in India. Its effect was seen today. A decline in small cap stocks was seen on Monday amid selling pressure in the market. Infrastructure and PSU stocks also faced selling pressure in the weak market. Both the indexes fell by more than 3 percent.
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