Why Covid-19 crisis has failed to trigger deep stock market selloff in India?

Even as the nation reports more than 300,000 confirmed infections and over 4,000 deaths a day, India’s benchmark equity index has been moving in line with regional peers.

The surprisingly muted stock market reaction to India’s virus disaster can also be seen in net outflows of foreign investors, which totaled about $1.5 billion in April versus $8.4 billion during the height of the rout last March.

A steep fall in stocks though would provide an opportunity to allocate more to that asset class, as equity valuations have grown expensive over the course of the last year, he said.

Expectations that Asia’s third-largest economy won’t take as big of a hit as last year have also been reflected in the rupee, which has recouped most of last month’s decline.

Indian shares are moving more in line with global peers, which despite this week’s stumble have been on a bullish trajectory overall.

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