Why Stock Market Crash: The stock market has been very disappointing this year so far. The market is witnessing a steady decline in the US markets amid a sharp decline in the US markets, constant capital withdrawal of foreign institutional investors (FPI) and concerns about the US fee rate. So far this month, foreign investors have withdrawn more than Rs 23,710 crore from equity markets. With this, the total withdrawal has exceeded Rs 1 lakh crore in 2025. This has so far respected billions of investors. However, on Tuesday, the domestic market has done some recovery on Tuesday and recorded a boom in the last five trading sessions.
Chinese market is attracted!
Trump’s ‘US First’ policy has started a wave of ‘leave emerging markets’. This has affected Indian shares. Now, China’s vigorous return has further increased this pain, which has increased the ‘sell India, buy China’. According to the data, India’s market capitalization has lost more than 1 trillion dollars since October 2024, while China’s market cap has increased a tremendous $ 2 trillion. Hang Seng has increased by 16% in a month, while the Nifty has slipped more than 2%. Foreign investors have taken renewed interest in China due to the launch and strong quarterly reports by companies like Dipcic, cheap valuation and companies like Alibaba and Lenovo. At the same time, foreign investors are constantly withdrawing money from the Indian market.
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What do you say?
Bofa’s report said in a report, “Allotment has increased again after a rapid decline last month, while support for Indian equity, which was a former market favorite, declined to two years low in allotment Continues. ” Earlier this month, Chris Wood of Jefferies recommended that global investors would emphasize China’s new attraction and increase their bets in both Europe and China.
He had said, “Due to greed and fear, Asia Pacific will increase overweight three percentage points in China in the relative-Return portfolio.” He informed that it will be fined by reducing allocation to Korea, India and the Philippines. The Chinese market has been inspired by revival of economic incentives, regulatory ease and investor-friendly policies. Measures such as rate cuts, property sector support and liquidity have restored the trust of investors, making Chinese equity an attractive bet compared to its expensive Indian counterparts.
This return of China came after its three consecutive years of negative return of its CSI 300 index. Hang Seng Tech Index, which tracks the 30 largest tech companies listed in Hong Kong, reached its highest level in 3 years last week.
