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Trump Effect triggered Indian and Chinese stock exchanges to decouple

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 through a wedge.

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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.

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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.

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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%.

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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”.

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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.

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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 

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Sulabh International unveils World’s biggest Toilet Pot model

The NGO gave 95 new household toilets to the residents of the village.

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Sulabh launched biggest pot toilet models
Sulabh International in working towards improving sanitation. Wikimedia Commons

Sulabh International on Sunday launched the “world’s biggest” toilet pot model in Haryana’s Marora village — popularly known as ‘Trump village’ — on the occasion of World Toilet Day.

As per a release by the non-profit, the mega Indian-style pot, made of iron, fibre, wood and plaster of Paris, measuring 20×10 feet, was unveiled to create awareness about the use of toilets in the village dedicated to US President Donald Trump.

Sanitation expert and founder of Sulabh International, Bindeshwar Pathak, also dedicated 95 new household toilets to the residents of the village.

“This large pot replica will be shifted to Delhi’s Sulabh Toilet Museum,” the release quoted Pathak as saying.

He said the idea behind naming a village after Trump was to highlight the issue of sanitation and cleanliness globally.

Puneet Ahluwalia, a member of the ruling Republican Party in the US, said that such an initiative would go a long way to motivate masses towards cleanliness and safe sanitation. (IANS)

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Dalai Lama says that India and China have great potential

The spiritual leader feels that both the countries are doing compassionate works

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Dalai Lama talks about India and China
Tibetan spiritual leader Dalai says that India and China can work together. VOA

New Delhi, Nov 19

Tibetan spiritual leader the Dalai Lama on Sunday said India and China have “great potential” and they could work together at a “practical level”.

“I think, a great potential… India and China combined are doing more compassionate work… At a practical level also. Imagine two billion people working together,” he told reporters here after inaugurating Smile Foundation’s initiative, The World of Children.

The spiritual leader, who has lived in India in self-imposed exile since 1959, said neither country had the “ability to destroy the other”.

“Whether you like it or not, you have to live side by side,” he said.

Underlining the ancient spiritual connection between the two countries, he said Chinese Buddhist Hsuan Tsang visited Nalanda (now in Bihar) and brought Nalanda Buddhist traditions to China.

“All thinkers of Nalanda are Indian. So Nalanda’s tradition is India’s tradition,” he said.

The Nalanda traditions had turned Tibetans, who were warriors, into more compassionate, peaceful and non-violent nation, he said.

“So sometimes in Delhi, teasing my Indian friend, (I say) if Tibet still remained in the previous way of life, like Mongols, Chinese invasion may not have taken place,” the Dalai Lama said in a lighter vein.

He said nobody in the world wanted violence but it was happening “because our minds are dominated by destructive emotions due to short-sightedness”.

“Nobody wants problems. Yet, many problems are our own creation.”

The Dalai Lama said the existing modern education was oriented to material values. India can take lead in improving the education system by combining modern education with ancient knowledge, he said. (IANS)

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Manushi Chhillar from India Wins the Miss World 2017 Title

India's Manushi Chillar won the coveted Miss World 2017 pageant here, 16 years after Priyanka Chopra won the title in 2000.

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Miss World
Manushi Chhillar has been crowned as Miss World 2017. Instagram #ManushiChhillar

China, November 19: India’s Manushi Chhillar won the coveted Miss World 2017 pageant, 16 years after Priyanka Chopra won the title in 2000.

Chhillar competed against 108 contestants from various countries at a glittering event held at Sanya City Arena here.

Miss World 2016 winner Puerto Rico’s Stephanie Del Valle gave away the coveted crown to the winner.

Chhillar, who is from Haryana, had earlier this year won the Femina Miss India 2017.

Miss world
Anti Ageing was the official skin care expert for Manushi Chhillar at the Miss World 2017 pageant. Instagram #ManushiChhillar

India, England, France, Kenya and Mexico grabbed the top five spots at the peagant.

Manushi, born to doctor parents, studied in St. Thomas School in New Delhi and Bhagat Phool Singh Government Medical College for Women in Sonepat.

Her entire family including brother and sister were present and they looked excited watching Manushi grabbing top five spot.

As many as 108 beauty queens from different parts of the world participated in the prestigious pageant. (IANS)