India Outpaces China in Drawing Global Capital Inflows, Report Says
NEW DELHI — India has outperformed China in attracting global capital flows as equity markets rebounded in April following a March decline, according to a report by Quant Mutual Fund.
The report said the global market recovery was driven by easing geopolitical tensions and improved investor sentiment. It also said India’s nominal GDP growth continues to outpace China’s, helping position the country as a preferred destination for global investors.
The recent correction in Indian equities, especially in the small-cap segment, appears to have largely run its course, the report said. Improving corporate earnings are expected to support further market growth.
India’s stable fiscal and monetary environment, along with supportive liquidity conditions, is also expected to aid credit expansion and strengthen the outlook for financial services.
The report said the current phase could offer a favorable entry point for investors, with portfolios tilted toward large-cap stocks and selective exposure to mid- and small-cap shares.
Quant Mutual Fund identified energy, infrastructure, financials, telecom, pharmaceuticals and data centers as preferred sectors. It remained underweight on manufacturing because of concerns over input costs and supply chains.
Globally, the U.S. Federal Reserve kept interest rates unchanged. U.S. equities rose about 9 percent during the month, while the Nifty gained 6.7 percent, outperforming most major markets. China’s Shanghai index rose 5.6 percent, while Japan’s Nikkei 225 advanced 11.6 percent.
The report said a ceasefire agreement involving the U.S., Israel and Iran on April 8, later extended indefinitely, helped stabilize investor sentiment, though a U.S. naval blockade of Iranian ports remained in place.
In commodities, gold and silver prices fell by nearly 4 percent in April, while Brent crude rose about 8 percent.
Between Feb. 27 and April 30, the Nifty fell 1,181 points, or 4.7 percent, from 25,178.65 to 23,997.55. In April alone, however, the index rose nearly 1,318 points, or about 6 percent, from 22,679.40 to 23,997.55. (Source: IANS)
