Source
r/IndiaInvestments•
CommonMBAMan

Indian equities market performance vis-à-vis global markets post corona-virus rebound

Comparison of equities market performance post corona virus rebound in markets since March 23. The author divided this into 3 phases.

Phase 1 - the ferocious bounce which began on March-23 and lasted till April 30

India31%
U.S.30%
UK29%
Germany26%
Japan24%
Australia37%
Brazil19%

Phase 2 - pullback which started from May 1 and lasted till May 14

India-8%
U.S.-2%
UK-6%
Germany-6%
Japan-2%
Australia-5%
Brazil-9%

Phase 3 - renewed move higher across global markets till present day

India-1%
U.S.3%
UK4%
Germany7%
Japan1%
Australia4%
Brazil11%

Key takeaways:

  1. Phase 1 - Rebound in India was in line with the global equities market
  2. Phase 2 - India lost much more than the other global markets
  3. Phase 3 - India is the only market in the sample set that is down. The major events in this phase were the announcement of the fiscal stimulus that failed to cheer the market, as well as lockdown 4.0 along with infections still increasing.

Source:

https://www.cnbctv18.com/market/in-numbers-india-has-decoupled-with-world-markets-and-in-the-wrong-way-6011611.htm

Posted May 27, 2020, 10:11 AM UTC

13033
[deleted]•

India doesn’t have the technological giants like US does. The tech sector is the driving force behind S&P’s resurgence now.

55
taste_the_thunder•

Can’t wait for the last decade’s SaaS and logistics companies to IPO. Retail investors will finally have some good stuff to invest in instead of the same old ITC, Reliance.

15
baap_ko_mat_sikha•

I don’t know. Can lead to another dotcom bubble in making. While ITC is evergreen for its usual returns.

11
[deleted]•

[deleted]

0
UtopianSoldier•

Which companies are you taking about?

2
taste_the_thunder•

Can't believe the most exciting IPO last year was SBI Cards and IRCTC. It's unfortunate that we got such an exciting startup market with absolutely boring IPOs.

Freshbooks, Capillary for SaaS.

Swiggy & Zomato for food tech.

Rivigo & Blackbuck for trucking. Blackbuck was doing something with petrol pumps too, last I heard. Udaan is doing good work in e-commerce.

Byjus, Vedantu and Toppr for Education

Bigbasket, Grofors and some of the meat and milk delivery startups.

Netmagic and whoever else does IT infrastructure.

Dunzo and Shadowfax for hyperlocal logistics. These 2 are pretty far away from an IPO though.

There are some companies doing interesting things in real-estate management, housing and office management. Housing.com had the right general idea but screwed up badly on the specifics and execution.

Some of these will IPO eventually. I'll be the first to line up.

13
F-001•

Interesting but this is just short term volatility. What perspective can you really gain from analysing such blips as an investor?

37
strolls•

+1

This period is not long enough to draw meaningful conclusions.

9
send_nipples•

This is making me think about allocating 30% of my investment to US funds.

32
mrdrinksonme•

My 43% investments are in foreign, which is up 38%. India on the other hand, 29% down 😂

31
send_nipples•

Wow. Care to share your funds?
Also how do you allocate to US funds with the same amount of money you invest? Do you skip SIP in indian funds or just reduce them?

9
mrdrinksonme•

Sure, here's the list.

Motilal Oswal Nasdaq 100 FOF
Motilal Oswal S&P 500 Index Fund
ICICI Prudential US Bluechip Equity Fund
Edelweiss ASEAN Equity Off-shore Fund
Edelweiss Greater China Equity Off-shore Fund
HSBC Brazil Fund
Nippon India Japan Equity Fund
PGIM India Euro Equity Fund

I have SIP in first two, which I'm planning to have for long term. Rest all are lumpsum investments.

I don't skip any SIPs which I have 5 - 3 in India and 2 in US funds. Lumpsum investments are strategical. I mostly enter when the sectors or countries markets are down.

19
incometaxx•

HSBC Brazil, you are a brave investor. What is your strategyin the commodities play? When you invest and when you sell. Thanks.

11
send_nipples•

Thanks for sharing the strategy 👍

2
F-001•

Wow...thats quite the international portfolio. Why not add Russia and Iran to the mix? (Those who actively follow the international markets will realize that this is a serious comment; to everyone else it will seem like a jibe.)

2
its_jaydeeee•

This is of great help man. Thanks!

1
rGL322•

Where can I check which exact stocks these FOFs are holding? Thanks!

1
parthos75•

This is making me think about allocating 30% of my investment to US funds.

I've invested some money in Motilal Oswal Nasdaq ETF and Edelweiss US Tech Fund. Both have been performing way better than large cap funds in India.

10
CommonMBAManOP•

My US and China allocations have already recovered and are in the green zone, but my Indian equities exposure is still in blood red zone.

International funds might be expensive and not have taxation benefits, but diversifying a portfolio always helps.

9
send_nipples•

and China allocations

Since corona and the recent shit China has been doing with almost every country eg hongkong, Taiwan and even India recently, I just can't bring myself to invest money in their market.

I would rather take a hit of few percents than invest with them.
Just my personal opinion. No judging

25
CommonMBAManOP•

No worries - my rationale to invest in the fund was to get exposure to Alibaba, Tencent, Taiwan Semi-conductors etc. I am against their shitty political activities as well.

14
gary2812•

Edelweisse Greater China Equity Off Shore?

2
notsosleepy•

Also it's better to stay away from a country with next to none transparency

6
Darth_Vader_Returns_•

Playing you part against China not yeh?

-1†
anishm85•

If you don't mind me asking can you share how you have invested in China and us equity. Is through mfs or directly via vested

1
CommonMBAManOP•

I invest through mutual funds (fund of funds) - Franklin Feeder US Opportunities and Edelweiss Greater China Equity Offshore Fund.

They are a bit expensive due to double expense ratio and are taxed as debt funds, but a good way to diversify if you are a passive investor.

8
anishm85•

Are considering switching to MO s&p 500 index fund due to its low TER.

5
UserameChecksOut•

I've invested some money in Frenklin Feeder US Opportunities and it is performing extremely well after Covid19 drop. Why don't more people invest in this fund? Their 7 year average return is 19% per year, much more than S&P 500.

0
mrdrinksonme•

There's a fund called "Edelweiss Greater China Equity Off-shore Fund." I'm invested in it and it's giving pretty good returns. I'm up 10% in 2 months time.

4
slipnips•

That's partly because of their currency rising against the rupee

7
anishm85•

I am assuming for US allocation you are invested in Nasdaq etf, MO Nasdaq fof or MO s&p 500 index fund.

1
QuickOriginal•

Do it. I have around 25% of my portfolio in 5 international funds and all are green. Meanwhile everything in India is red (but hopefully PPLTE will turn green for me given today's rally.)

7
Rajarshi0•

pplte is probably the best non-index fund of India.

3
send_nipples•

Whenever I check pplte it's almost always positive and doesn't follow most major Indian fund houses lol.

1
amispurs•

Falls in its indian stocks are held up by gains by US stocks. Shouldn’t directly compare it to other funds investing only in India.

2
send_nipples•

Yeah. Seems like it's perfectly balanced fund as most of the times it's stable

1
masala--man•

As whole country being in lock-down for 2 months, this was bound to happen. This will bounce back once we go business as usual.

4
megaboogie1•

ASX is technically out of bear market as of yesterday.

1
mrdrinksonme•

You will need to do a bit of digging for that, since some of these are FoF and their direct portfolio is not available. I was able to find some on morningstar website.

1
denimiskillingme•

Those returns you have listed here account for current devaluation? For example, if I invested $10K in best performing ETF on n100 and an equivalent INR in best performing ETF in India, the amount after 12 months would be different even if both markets generated same return. Rupee loses to dollar every year and keeps getting worse.

1
jayredd3•

How much did the markets fall before Mar 23rd/pre-Phase 1? Isn't that equally important.

1
[deleted]•

[deleted]

0
kimjungun007•

Objective is not to find out if you are 'proud of' any country or not. Thread is all about stock market performance.

1
[deleted]•

[deleted]

-2†