India has two major securities trading markets, namely the Mumbai Stock Exchange (BSE) and a relatively new National Stock Exchange (NSE).The BSE is represented by its flagship index BSE30. It is the 11th largest exchange in the world. It has more than 4,700 listed companies with a total market value of about 1.7 trillion US dollars; NSE is based on its iconic Nifty50 Index as the core, ranking ranked in the world in the world.On the 12th National Congress, there are more than 1,200 listed companies with a market value of about 1.65 trillion US dollars.
Compared with India’s stock market, the Mumbai Stock Exchange is equivalent to the Mumbai Stock Exchange, and its SenseX30 index corresponds to the Shanghai Stock Exchange 50 Index; the State State Stock Exchange is similar to the Shenzhen Stock Exchange.However, these two single market indexes do not fully reflect the overall trend of the Indian stock market.In contrast, the MSCI India Index includes the overall performance of large and medium -sized listed companies. At present, 131 ingredients stocks cover 90%of the market value of foreign capital can invest in circulation.Analing analogy in India’s CSI 300 Index.
The total size of the Global MSCI India Index’s products is US $ 9.945 billion, which is also more balanced in market value and industry distribution.Compared with the BSE30 and Nifty50, the MSCI India Index has more component stocks, and the weights of financial, information technology, optional consumption, energy, necessary consumption, raw materials and medical and health are relatively balanced.The degree of recognition and index can be more advantageous.From the perspective of valuation, as of January 2024, the expected P / E ratio of the MSCI India index is at the central location of the past five years, showing that its valuation level is moderate, neither high nor too low.
In 2023, the Indian stock market’s attraction to foreign investment was increasing. Especially after the US dollar refund pressure in 2022, the MSCI India India index achieved a new high inflow high in foreign capital in the second quarter of 2023, reflecting the continued optimism of the Indian stock market in the international market.At the same time, the Indian government has increased its encouragement of domestic capital participation in the stock market, optimized the structure of the stock market, and improved market stability.Given that its capital expenditure and net income growth helps digesting the current valuation, the fundamentals of the MSCI India Index still have an optimistic attitude.
Finally, from the perspective of global asset allocation, investing in the Indian stock market, especially the MSCI India index, helps investors to effectively disperse risks and broaden the effective frontiers of the investment portfolio. At the same expected risk level, it is expected to increase the return on investment.For example, adding the Indian Index (MSCI India Index) that was originally adjusted by the exchange rate in the asset portfolio composed of A shares (CSI 300), bonds, gold and crude oil, can significantly optimize the performance of the investment portfolio and achieve strict risk controlAt the same time strive to improve the level of income.In general, India’s capital market and its representative index MSCI India has opened up diversified and vast investment opportunities and asset allocation strategies for global investors.
Figure 1: The Indian stock market can significantly improve the effective frontier of the asset allocation of domestic investors
According to effective cutting -edge calculated data sources: Wind; yields are converted into RMB yields
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