Synopsis
In October, the big dip in the Indian market was triggered by a single factor β China. The country, to revive its economy, was set to come out with a stimulus package. And as valuations in China were cheaper than in India, FII money was being redirected there. The sharp rise in the Chinese stock market gave credence to this narrative. Now, because China is a metal guzzler, all metal stocks performed very well in that phase, even as most other sectors saw sharp cuts. But when the Chinese stimulus package turned out to be underwhelming, the metal stocks plunged. The question now is: Was the initial China stimulus a trial balloon floated ahead of the US elections? Will the real one come once the new US president is done with his tariff tantrums?
Will the dragon finally perform this time? This is the question the street has been grappling for quite some time. The China stimulus to revive its economy was the key reason for the Indian market to witness a correction. Some, however, may say that the China stimulus has become a kind of quarterly event which drives metal stocks up β but then does not have any real impact on the economy. Looking back, the Chinese economy has faced problems
- FONT SIZE
AbcSmall
AbcMedium
AbcLarge
Uh-oh! This is an exclusive story available for selected readers only.
Worry not. Youβre just a step away.
Why ?
Exclusive Economic Times Stories, Editorials & Expert opinion across 20+ sectors
-
Stock analysis. Market Research. Industry Trends on 4000+ Stocks
-
Clean experience with
Minimal Ads -
Comment & Engage with ET Prime community -
Exclusive invites to Virtual Events with Industry Leaders -
A trusted team of Journalists & Analysts who can best filter signal from noise -
βGet 1 Year Complimentary Subscription of TOI+ worth Rs.799/-β
Source link
