India and China may be the flavor of the world markets, but when it comes to performance of their stock exchange indices in 2008, they are doing the worst in Asia. While the Bombay Stock Exchange’s National Index (popularly known as BSE 100 Index) dipped by 16.08% during the first two months of 2008, the Shanghai Stock Exchange’s Shanghai A Index slipped as much as 17.36% during the same period.
A comparison of major market indices in Asia by Thomson Financial reveals that none of the indices posted positive returns during the said period. The best performing index during the period was Jakarta Se Composite, which declined by less than 1% during the said period.
According to analysts, the bad performance of these indices is largely due to the late correction in India and China. “Even though global markets witnessed a slowdown in December, emerging markets like India and China carried on till January. In case of India, the correction happened only after the first fortnight of January,” explains Dipen Shah, head research of Kotak Securities.
Analysts expect the market to witness significant global currency corrections in near future. “These have a bearing on the investments in emerging markets and returns thereon. Global fund allocations for emerging markets would be clearer once currency implications become clearer during the next few months”.
Keywords: Indian Economy, China Economy, Bombay Stock Exchange(BSE), National Stock Exchange(NSE)
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