Never miss a story

Get subscribed to our newsletter


×
US President Donald Trump, Wikimedia

Singapore, 1st May 2017: US president Donald Trump has managed to do what Chinese President and Indian Prime minister could not do upon being elected to their respective offices.

The correlation between the CSI 300 and the Nifty 50 indexes survived Xi Jinping’s ascent to power in 2012 and Narendra Modi’s election in 2014. Donald Trump, however, has succeeded in driving a wedge. The link between equity prices of the world’s two most populous economies is now the weakest since at least the 2008 financial crisis. Trump’s effect has severed the relations between Indian and Chinese stock exchanges.


Check out NewsGram for latest international news updates.

In some ways, the decoupling predates the US presidential election. Markets that ebb and flow in tandem 30 to 40% of the time had developed minds of their own by the time Britain voted to leave the European Union last summer.
However, correlations are supposed to be mean-reverting. The continued divergence of China and India this year, with the Nifty’s 21% jump in dollar terms overshadowing a 5% gain in the CSI 300, shows that Trump’s policies may be prolonging the separation.

NewsGram brings to you current foreign news from all over the world.

It isn’t that investors have become relatively more bullish on Indian earnings compared with those in China. On a price-earnings basis, the Nifty has on average enjoyed a 40% premium over the CSI 300 since early 2012. The gap, which widened to almost 100% when Modi’s election as Indian prime minister started to look like a cinch, is currently 29%.

Look for latest news from India in NewsGram.

Even so, every gain in the Indian benchmark is making investors sceptical. A friendless rally, as Gadfly has argued, is good for the market because it’s keeping investors focused on how, for example, Trump’s proposed clampdown on H-1B work visas would hurt India’s software exports. But companies like Tata Consultancy Services Ltd and Infosys Ltd are anyway stoking the embers of a dying industry. What’s not getting enough attention is the impact of the other Trump proposal – “tax reforms”.

NewsGram brings to you top news around the world today.

Now, a 15% US corporate tax rate is probably a chimaera, but if the ultimate political compromise in Washington is for a meaningful reduction in what companies pay, the lift to their profitability is bound to make them search for growth markets.

As New Delhi’s own tax reforms pave the way for a common domestic market of 1.25 billion people, some of those US investments could head to India.

Follow NewsGram on Facebook

While India has a massive jobs deficit, the almost 6% gain in the rupee this year suggests that becoming the next factory to the world with the help of a cheap currency is not on Modi’s wish list. That’s one more reason why a recoupling of the Chinese and Indian markets is unlikely to happen soon.

– prepared by Nikita Tayal of NewsGram, Twitter: @NikitaTayal6


Popular

wikimedia commons

Tenali Raman, courtier to Krishnadevaraya (A portrait)


Tenali Ramakrishna, or Tenali Raman as he is more popularly known is Birbal's equivalent in South India. A court jester and a scholar exuding great wisdom, Tenali Raman was known as one of the greatest courtiers in King Krishnadevaraya's court.

Keep Reading Show less
Photo by Pixabay

Battle at Lanka as mentioned in the Ramayana

It must be noted that different religions and societies in Southeast Asia have alternative narratives of Ramayana, one of the greatest epic.

Here are some of the versions of Ramayana!

Keep Reading Show less
Virendra Singh Gosain, Hindustan Times

Hijras are a community of people who include eunuchs, intersex, and transgender people

When a baby is born in an Indian household-they invite hijra to shower the newborn with their blessings for their blessings confer fertility, prosperity, and long life on the child. But when that child grows up we teach them to avert their eyes when a group of hijras passes by, we pass on the behaviour of treating hijras as lesser humans to our children. Whenever a child raises a question related to gender identity or sexuality they are shushed down. We're taught to believe that anything "deviant" and outside of traditional cis-heteronormativity is something to be ashamed of. This mentality raises anxious, scared queer adults who're ashamed of their own identity, and adults who bully people for "queer behaviour".

Hijras are a community of people who include eunuchs, intersex, and transgender people. They worship the Hindu goddess of chastity and fertility, Bahuchara Mata. Most hijras, but not all, choose to undergo a castration ceremony known as "nirvana" in which they remove their male genitalia as an offering to their goddess. The whole community is vibrant with hundreds of people with hundreds of ways of expression, the true identity of a hijra is complex and unique to each individual. In India, hijras prefer to refer to themselves as Kinner/Kinnar as it means the mythological beings who excel at singing and dancing.

Keep reading... Show less