India is no longer the most liked stock market in the continent of Asia. India has slipped to the fourth position in this matter. 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 at number four in Asia Pacific’s favorite investment places.
Earlier India used to be the first choice of investors, but now Japan is in the first place. After that there are 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% 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 range for the last two months and there are no signs of improvement in it.
The stock market can return again
It has been said in the report 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 US-India trade agreement fixed less than 20% tariff rate, then the market may rise. Apart from this, even though the weakness of the IT sector is affecting the market, private banks can be purchased at good prices because their results may be better in the coming quarters.
Why did investors worry?
However, the fund managers of Asia are having more expectations than before. Investors’ concern over the trade tariff policies of US President Donald Trump has reduced. About 222 Asian fund managers participated in this survey, which manage a total assets of $ 587 billion. Of these, 70% believes that Trump’s tariff will only have a slight impact on Asian markets and economies. The survey was conducted between June 6 to June 12. The main reason behind the positive thinking of fund managers is the expectation of trade deal and loose monetary policies of the world’s big central banks.
Where is the case trapped in America-India?
Here, S. Mahendra Dev, chairman of the Prime Minister’s Economic Advisory Council (EAC-PM), has said that India should talk about the business agreement with the US on its own terms, keeping in mind the national interest. Apart from this, 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, South East Asian countries will provide full access to American products in its market, while Indonesian goods will charge a 19 percent charge in the US. The Indian party is in Washington for the fifth round of talks on the proposed bilateral trade agreement (BTA).