India In Race To Become Biggest Stock Market Gainer Globally This Year: Report

According to data compiled by Bloomberg, measures for Indonesia, India, and Singapore are closing on Brazil’s Ibovespa Index, which has climbed 5.2 per cent in local currency terms

Indian stocks attracted nearly $6 billion from international investors this quarter.

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India’s equity market could become the biggest gainer in the world this year. Indian market is among the three equity markets in Asia this year that are competing to become the biggest gainers in the world, according to a Bloomberg report. This even after Asian markets struggled against a stronger dollar. 

According to data from major stock benchmarks compiled by Bloomberg, measures for Indonesia, India, and Singapore are closing on Brazil’s Ibovespa Index, which has climbed 5.2 per cent in local currency terms. The Bovespa Index was expected to top the global equity market in 2022.  

The report noted that the Asian gauges are up at least 3.5 per cent each, which means a single-day gain could make up the difference. 

This year South and Southeast Asian stocks were among the few bright spots as the post-pandemic reopenings and a revival in tourism boosted corporate profits in the region. As Inflation gripped the globe in Asia it reminded lower than expected. 

According to Bloomberg data, Indian stocks attracted nearly $6 billion from international investors this quarter, while Indonesia’s net inflows amounted to more than $4.4 billion so far in 2022.

However, the region may become less attractive next year as investors shift their focus to cheaper North Asian markets, the report said.

“North Asia is expected to outperform on valuation, an improving currency and interest rate environment," Frank Benzimra, head of Asia equity strategy at Societe Generale SA told Bloomberg. He added that investors are also positioning for a pick-up in the semiconductor industry’s revenues by the second or third quarter of next year.