Shanghai loss is Mumbai's gain
Various reasons have been attributed to the great run the Indian markets had on Jan 28 and 31. The market has gained about 100 points on the Nifty in the two days.
But one factor that seems to missed the radar of market analysts is the possibility of foriegn funds switching from China to India.
It does seem a rather stupid statement at first glance. After all the Chinese economy is booming and it seems the place to be and Jim Rogers has a Chinese nanny for his child , so he/or she can learn the language.
But take a look at this. Even as the Chinese economy expands by 9.5%, the Shanghai stock market closed at a six year low on Monday, Jan 31.
"Shanghai stock market dove below 1,200 points, closing Monday at 1,191.82, a six-year record low. Analysts ascribed the decline to the uncertainty and low sentiment around the coming week-long holiday." says a Chinese newspaper.
But one factor that seems to missed the radar of market analysts is the possibility of foriegn funds switching from China to India.
It does seem a rather stupid statement at first glance. After all the Chinese economy is booming and it seems the place to be and Jim Rogers has a Chinese nanny for his child , so he/or she can learn the language.
But take a look at this. Even as the Chinese economy expands by 9.5%, the Shanghai stock market closed at a six year low on Monday, Jan 31.
"Shanghai stock market dove below 1,200 points, closing Monday at 1,191.82, a six-year record low. Analysts ascribed the decline to the uncertainty and low sentiment around the coming week-long holiday." says a Chinese newspaper.
Why should the markets plunge to a new low when the economy is booming? Surely, a week-long holiday cant be the reason! Do the markets know something we dont.????
Is a great rush of fund from China to India in the offing? I dont have a clue, but would be uneasy about stocks pegged to the Chinese story!
posted by tvm at 2:09 PM
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