Indian bond, equity markets decoupled; see 30% downside in Nifty50: CLSA

The decoupling of Indian equity markets, this year, from the global markets has been remarkable. While the S&P 500 has lost over 20 per cent in CY22 so far, the Nifty50 index is marginally in the red

Global research and broking house CLSA sees a 30 per cent downside in Nifty50 from the current levels, even as it believes that the Indian bonds and equity markets have decoupled from their global peers. 

“The difference between 10-year Indian and US G-Sec yields has fallen to a 13-year low of 3.3 percentage points (ppt). This, along with a near-record Indian equity valuation premium to peer markets as well as to domestic bonds, indicates a kind of decoupling for Indian bonds as well as equity markets,” wrote Vikash Kumar Jain of CLSA in a recent note.

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