India is no longer the most favorite stock market in the continent of Asia. India has slipped to fourth place in this case. This claim has been made in the new report of Bank of America (BOFA). According to the new report of Bank of America, India’s stock market has now come in fourth place in Asia Pacific’s favorite investment sites.
Earlier India used to be the first choice of investors, but now Japan is in the first place. It is followed by Taiwan and South Korea. China has ranked fifth in this list, followed by Australia and Thailand. According to the report, now only 10% fund managers are investing more in India, while 32% are increasing investment in Japan, 19% in Taiwan and 16% in South Korea. The biggest reason in the report is that the Nifty has been stuck in the same realm for the last two months and there are no signs of improvement.
The stock market can return again
The report states that the reason for the growing choice of Japan is the good opportunities for the banks and the semiconductor sector. Taiwan and Korea are also benefiting from the increasing demand of semiconductor. At the same time, the condition of India’s IT sector is weak and it is at the lowest level of the last 20 months. However, market experts believe that if the tariff rate is fixed less than 20% in the US-India trade agreement, the market may become fast. In addition, even though the weakness of the IT sector is affecting the market, private banks can be purchased on good prices as their results may be better in the coming quarters.
Why is investors’ concern reduced?
However, the Asian Fund managers are having more expectations than before. Investors’ concerns over US President Donald Trump’s trade tariff policies have decreased. About 222 Asian Fund managers participated in this survey, whose total asset management is $ 587 billion. Of these, 70% believes that Trump’s tariff will have a slight impact on Asian markets and economies. The survey was conducted between June 6 and 12. The main reason behind the positive thinking of fund managers is the expectation of trade agreement and loose monetary policies of the world’s big central banks.
Where is the matter stuck in America-India?
Meanwhile, the Prime Minister’s Economic Advisory Council (EAC-PM) President S Mahendra Dev has said that India should talk on the business agreement with the US on its terms, keeping in mind the national interest. In addition, US President Donald Trump has said that the proposed trade agreement with India will be on the same lines as the US has done with Indonesia on Tuesday. Under the US-Indonesia trade agreement, the Southeast Asian countries will provide full access to American products in its market, while Indonesian goods will be charged 19 percent in the US. The Indian party is in Washington for the fifth round of talks on the proposed bilateral trade agreement (BTA).
