Features

Chart of the week: India charges ahead of emerging markets

India’s BSE Sensex index of the 30 largest companies listed on the Bombay Stock Exchange has leapt ahead of the MSCI emerging-markets index.

906_COTW

India's BSE Sensex index of the 30 largest companies listed on the Bombay Stock Exchange has leapt ahead of the MSCI emerging-markets index.The Sensex reached a new record above 36,700 this week, and has gained 8.6% this year. Its divergence from other emerging markets accelerated in March when global equities began to tumble.

Investors have remembered that India is more insulated from a potential trade war than most developing economies, as exports comprise just 18.9% of its GDP. Moreover, India has relatively little exposure to China. The Sensex has also been propelled by the stellar performance of a few big domestic stocks, such as Tata Consultancy Services, the index's top performer, up almost 50% this year.

Viewpoint

"[We] forget how much banking did to finish off the class system in Britain. The financial deregulation of 1986 turned out to be a cultural as much as an economic moment. It threw up a new rich who displaced the high-born as the ultimate powers in the land. It spread American notions of merit and competition to industries beyond finance The sharpest contrast is with my own field. While much better at recruiting women, the media does not cherish diversity of class. It is a half-closed shop of unpaid internships and people with familiar surnames. The arts and politics, too. It would rankle less if these industries were not so pious with it. When Sajid Javid became Britain's first ethnic-minority home secretary earlier this year, much was made of his background. He is 48. Chase Manhattan made him a vice-president when he was 25. They just did not go on about it."

Janan Ganesh, Financial Times

Recommended

I wish I knew what an emerging market was, but I’m too embarrassed to ask
Too embarrassed to ask

I wish I knew what an emerging market was, but I’m too embarrassed to ask

This week's “too embarrassed to ask” explains what emerging markets are, and why you might want to invest in them.
9 Sep 2020
Bullish investors return to emerging markets
Stockmarkets

Bullish investors return to emerging markets

The ink had barely dried on the US-China trade deal before the bulls began pouring into emerging markets.
27 Jan 2020
The Arab Spring ten years on: a revolution that failed to blossom
Global Economy

The Arab Spring ten years on: a revolution that failed to blossom

Ten years ago, the Arab world was rocked by mass protests and popular uprisings that ousted long-reviled dictators. For the most part, the end result …
23 Jan 2021
Why investors should beware of India’s surging stockmarket
Emerging markets

Why investors should beware of India’s surging stockmarket

The BSE Sensex benchmark index has soared by 90% since March, largely driven by foreign investors. But India's bull market is very vulnerable.
15 Jan 2021

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Inflation is the easiest way out of this – just don’t expect politicians to admit it
Inflation

Inflation is the easiest way out of this – just don’t expect politicians to admit it

The UK government borrowed £34.1bn in December, a record amount for that month. Britain's debt pile now amounts to 100% of GDP. How are we going to pa…
22 Jan 2021
When will the US stockmarket bubble burst?
US stockmarkets

When will the US stockmarket bubble burst?

With US stocks more expensive than before the Wall Street crash of 1929, there are growing signs of “mania”. But what will push markets over the edge?
22 Jan 2021