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.
“[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