American markets have reached new heights, but the story seems to be different when we talk about the stock markets in asia. Currently, the two major countries in Asian stock markets are India and China. We will be talking one by one on both, where they are right now and how will their future journey look like.
Chinese Stock Markets
At the beginning of September 2020, Hang Seng index hovers in and around the range of 25000-26000. Looking at the figures in Jan 2020, Hang Seng stood at around 27000-28000. Clearly , the Chinese markets are yet to reach their Jan levels, still, the Chinese markets have shown great recovery starting from the biggest fall in the month of March where Hang Seng Index was at 21000 to now being at around 25000+
Although, if we talk about the Shanghai Composite Index (SSE Composite Index), the story is a bit different here. SSE never showed a great fall no matter how worse the situation of Coronavirus was in China. In fact, the SSE has shown remarkably new levels breaking all earlier milestones. Currently, SSE is standing at around 3350 as opposed to the earlier highs of 3071 in the month of March 2020. SSE is currently trading somewhere in the range of the highs of the year 2015 and 2018. What’s important to watch here is that will SSE break all earlier highs and year 2020 will become the best year for Chinese traders and investors? We will see that soon.
Conclusion for Chinese Indexes
SSE being the biggest index for the Chinese markets, we can say that Chinese markets still seem to be in great shape, in fact, they are about to breach their all-time high levels. With respect to this only, Hang Seng index which showed a fall in the month of March has also showed a great recovery and is trying to reach all time highs just like the SSE Index.
Therefore we can say that it is a great opportunity to invest in the Chinese markets for great returns. Although, the Chinese markets seems stretched now and upward move from current levels might become difficult.
We all know that stock markets in asia are incomplete without the Indian stock markets, so let us discuss what is the position of the Indian stock markets and is it a great opportunity to invest in them.
Indian Stock Markets
From the first glance, the Indian markets seemed to be the slowest and the weakest when it comes to recovering from the COVID damage. But if we talk about the numbers and the great potential the Indian government, businesses and investors have, investors in the Indian markets might be up for a bonanza.
Sensex which was around 41000 in the month of Jan, has now, in the month of September reached back once again at around 39000 levels. Nifty 50, replicating the Sensex has reached at around 11600 levels from earlier 11900/12000 levels in the month of Jan 2020.
What makes India more desirable than China for Investors
It would be wrong to compare the pre-covid India with post-covid India. The reason? India is about to boom.
With the increased hatred towards China from all of the world, India has become the next best destination for all the companies to set up their businesses. Companies like Apple, Samsung and many more have already set up their assembling and manufacturing plants in India. In addition to that many local Indian businesses such as Reliance headed by Mr Mukesh Ambani (Top 10 richest people of the world as per Forbes) have shown astonishing results.
Many giants like Facebook, Microsoft are putting in their money directly into the Indian markets as Foreign Direct and Indirect investments.
On top of that, many Indian companies have still not started working at their highest efficiency due to current lockdown situation in India.
All in all, if we talk about the stock markets in Asia, India clearly is more lucrative than China especially if somebody is looking for some extraordinary returns.
.
For more articles, click here
.
.
.
.
.
.
Disclaimer: Views expressed on MoneySymphony.com are just an expression of thoughts. To no extend we are or should be held liable for any losses or conflicts. MoneySymphony.com suggest users take advise from certified experts before any investment decisions. User actions may carry risk. All decisions remain the sole responsibility of the individual only.