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India Outperforms along with Korea

I just did a relative analysis of world indices for the last three months.

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The top two right now are India followed by Korea which are close to the same levels they were in April, with Shanghai dead last, losing some 25% in the same time.

It’s strangely decoupled in the last month or so with the developed market indices – the Nikkei, FTSE and Dow are down over 10% and the DAX about 5%. I don’t know where we will go but this is one of those times when we should be glad we’re in the same place while the rest of the world is not going anywhere. But will it last? When does the uncorrelated become the correlated?

What do you guys think?

  • Mr. D says:

    >haha, it's going to come down. isn't it?

  • Nissim says:

    >If you look at 2007-08, Shanghai (or atleast Hang Seng) started falling 3 months (Oct 2007) before India did (Jan 2008). Maybe we do lag US and China by 3 months. If so, then July or August should see a selloff.

    http://nissimnabar.wordpress.com

  • pink says:

    >I am optimistic because what I observe that money is being percolated to the lowest levels of society.Peceived BPL are happiest.So can a KING be unhappy when the labours are happy?

  • Lekkala says:

    >As long as FIIs keep pouring money into our market we will be outperforming other markets…one can easily understand the direction of market in near term by checking the trend of FII. June net buy minus sell is huge positive as FII saw good growth in india..but once Interest rates go up(they will do to decrease the speculative growth)we might see a sell off in coming days..