indian stock market
Global brokerage CLSA has reversed its initial strategic shift from exiting Indian stock markets to investing in China. The brokerage firm has decided to increase investment in India and at the same time reduce investment in China. CLSA stated in one of its reports that after Donald Trump’s victory in the US elections, challenges may arise for the Chinese markets, which is why it has taken this step. If foreign investment in the Indian market starts to increase due to this report, then the market may regain momentum, but how much will it be? It is still difficult to get an accurate estimate.
Why did you reverse your decision?
The brokerage said the trade war may intensify during Trump’s second term, while currently the share of exports in China’s growth is the highest. By early October, CLSA had increased its investments in China and reduced its investments in India. The brokerage said that it is now reversing this process, that is, it is going to increase investment in India again.
Confidence expressed in Reliance
Foreign brokerage house CLSA had also recently released its report on Reliance shares. The report says that in the coming times there is a possibility of up to 70% rise in Reliance stock from the current level. Currently, Reliance shares are trading at around Rs 1,266 in the market. However, the stock has fallen 7.70% in the last month. However, CLSA believes that this decline is an opportunity for investors. Especially for those investors who want to invest in Reliance from a long-term perspective. Let’s understand the reason behind this.
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What does the report say?
CLSA says Reliance’s new $40 billion energy business will soon be able to fill the market. The company’s 20 GW solar gigafactory is ready for launch in the next 3-4 months. CLSA has valued the solar business at $30 billion, which is a discount to currently listed solar companies. Despite this, as per the report, Reliance shares are trading in the range of five per cent rainy day valuation with zero value of the new energy business.
