India best-performing stock market since June lows: Report

Most global markets have bounced off their multi-month lows made in June as inflation concerns eased and expectations of fewer rate hikes from the US Federal Reserve (Fed) helped cool off bond yields and improve portfolio flows. However, the performance of Indian markets stands apart, a report by Business Standard said.

The report pointed out that the benchmark Nifty50 Index gained the most among major global markets, soaring 13.8 percent since June 17, when it had dropped to its lowest levels in 13 months.

In dollar terms, however, the US gained the most at 12.8 percent as all significant global currencies had weakened against the greenback in recent months, it added.

Risky assets had seen a sharp plunge in June — with many slipping into the bear-market territory — as investors took money off the table amid fears that aggressive rate hikes by the Fed would trigger a recession., noted BS The war in Ukraine and its impact on commodity prices had also crimped investor sentiment.

Since June, the markets have staged a remarkable comeback. As recession fears led to a sell-off in commodities such as Brent crude, steel, iron ore, and other industrial metals, it also gave rise to the ‘peak inflation’ theory — the worst of price rise being behind us, explained the report.

"The fall in input costs helped the market recover amidst hopes that central banks may not be as aggressive when it comes to monetary tightening as feared. Although the Fed raised interest rates by 75 basis points for the second straight month in July, Jerome Powell’s statement that future hikes will be guided by data lifted sentiment," the report said.

In dollar terms, US markets rose the most since then, up 12.8 percent and India was the second best-performing equity market, up 11.8 percent. France and Japan's equity markets rose 7 percent and 8.5 percent in dollar terms since June 17, informed the report.

Meanwhile, in domestic currency, India rose the most, followed by US. France and Japan added 10 percent and 8.5 percent, respectively, since that time, it further stated.

Among laggards, Hong Kong, Taiwan, China, and Philippines markets lost the most since June 17, added BS.