The news came a few days ago that JP Morgan has listed Indian government bonds “Fully Accessible Route” in the GBI-EM Global Diversified Index starting from 2024. It is a significant recognition for India, increasingly Asian alternative to China not only as an industrial investment destination but also as a reliable financial partner. It is therefore likely that JP Morgan's decision will generate large foreign investment flows for the country which already today represents the second largest sovereign bond market in the world in the Emerging category.
Stocks: JP Morgan turns the spotlight on India. Here because
The performance of the stock markets also confirms the good momentum of the country, which is also at the center of a potentially very insidious conflict due to Canada's accusations of the assassination on its territory of a Sikh leader by agents of Prime Minister Modi. But, as the Saudi precedent of the assassination of journalist Adnan Khashoggi teaches us, Western indignation has a short memory when it comes to good business. And India promises excellent prospects in this regard, judging by the latest analyses:
- The overall unemployment rate fell to 7,09% in September, compared to 8,10% in August, a one-year low.
- India's services sector grew at a faster pace in September, with optimism at a nine-year high
- This bodes well for Asia's third-largest economy, which is expected to be the fastest-growing economy this fiscal year, defying a global slowing trend.
- S&P Global's Indian services purchasing managers' index rose to 61,0 points last month from 60,1 in August, beating expectations in a Reuters poll that had forecast a decline to 59,5.
- The value was above the 50-point threshold that separates growth from contraction for the 26th consecutive month.
- This improved business confidence about the next 12 months, reaching its highest level since June 2014.
India without limits: it goes to the moon and attracts 15 billion from abroad
A picture in which fits the coup de theater that gave the world the measure of the potential of the country which, it is worth remembering, gave birth to some of the most important protagonists of Silicon Valley technology, from Satya Nadella, number one of Microsoft to its sworn enemy Sundar Pichai of Alphabet. In August, the world's most populous nation celebrated a milestone in space exploration by becoming the first country to achieve themoon landing of a spacecraft unmanned robotic spacecraft near the lunar south pole.
These factors are at the origin of the good behavior of Mumbai Stock Exchange which since the beginning of the year has earned 9,5% in euros, thanks also to the revaluation of rupee at highs of the last six months. But the rise in blue chips is well below the performance of the S&P BSE Sensex Mid Cap index +20%. According to Bloomberg data, from the beginning of the year to the end of August, approximately 15,5 billion dollars.
All this contributes to improving the business confidence at the highest level since June 2014. Inflation, in fact, also seems to be back under control: the price index fell to a six-month low as companies refrained from increasing rates too sharply to try to acquire new clients.
Stock markets this afternoon in Europe: only Prysmian and Maire shine
In short, a picture in stark contrast to the grayness of other price lists exhausted by the long rise in rates. European stock markets are struggling to rebound this morning, affected by the negative trend in Wall Street futures. EuroStoxx50, FtseMib of Milan and Dax of Frankfurt revolve around parity. Highlights only Prismian +5,5% after the presentation of the industrial plan e Maire Tecnimont +6% after the announcement of a mega $8 billion contract in Abu Dhabi.