Hong Kong's Hang Seng Index climbed 2.06% today, propelled by mainland China's CSI 300 gains and anticipated fiscal easing. The move triggered $5 billion in foreign institutional investor outflows from Indian equities this quarter, per NSE data, as funds pivot to undervalued Asian plays.
India's Nifty 50 eked out a 0.74% advance, but year-to-date returns of 1.9% pale against the Hang Seng's 15% and Korea's Kospi 53.5% surge. This divergence underscores policy gaps: China's 1 trillion yuan infrastructure package contrasts India's 7% capex growth, dampening sentiment.
Market watchers at Morgan Stanley maintain a 105,000-point Sensex target for December, citing earnings resilience. Yet, FII sales hit record 2.5 lakh crore rupees in 2025, fueled by U.S. rate hikes and rupee depreciation to 84.5 per dollar.
Consumer confidence in India holds at 95 index points, supporting domestic mutual fund inflows of 3 lakh crore rupees. Innovation in green bonds, with 50,000 crore issued, offers hedges against volatility.
Economically, the shift pressures export sectors like IT services, down 8% on Hang Seng-linked supply chains.
