There is news that China is going to release a big relief package again. Due to this, there are speculations of foreign investors moving from India to China. Last week there was a big fall in the market due to a similar incident.
New Delhi. If you also invest money in the share market, play with caution. The news has come that China is going to play a big game next week, whose direct impact can be seen on the Indian market and investors. This is being said because China was also the reason for the decline in the Indian market last week. In such a situation, once again China is going to repeat the same thing which it did last month. Obviously, the possibility cannot be denied that this time also China’s bet may prove costly for Indian investors.
Bloomberg, after a survey of 23 leading investors, has claimed that the Chinese government is going to release a relief package of $ 283 billion (about Rs 24 lakh crore) next week. Earlier in September, China had issued a relief package of Rs 12 lakh crore, after which the market cap of Shanghai Stock Exchange increased by about Rs 269 lakh crore. In contrast, the Indian stock market had seen a decline for 5 consecutive sessions and investors had lost Rs 16 lakh crore. Investors and analysts are speculating that if double the relief package is issued this time, its impact may also be double.
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Why will India be affected?
If you look at the figures of last week, you will get the answer yourself. In fact, after the release of China’s relief package, there was a significant improvement in both its economy and stock market. Market demand also increased, because 5 crore people were directly benefited by reducing interest. As the scope of China’s market increased compared to India, foreign investors started withdrawing money from here and putting it there. Now you know that the market starts falling as soon as the investment of Foreign Investor Portfolio (FPI) falls. FPI has withdrawn about Rs 20 thousand crores from the Indian market since the beginning of October, the effect of which came out in the form of decline. There is a fear that if FPI starts withdrawing once again, the market may have to face a decline in the next week also.
What do economists say?
Pushan Dutt, professor of economics at international business school INSEAD, says that China’s focus is on bringing real estate investment on the path of reform rather than directly providing relief on the domestic front, so that its impact remains for a long time. It is estimated that China’s Finance Minister may announce a big relief package on Saturday.
Why is it issuing relief package?
In fact, China, which troubled the whole world with the Corona epidemic, had to suffer the most. Because of this, not only did its economy slow down, but the expenditure of the government and the public also decreased significantly. Its effect was also visible on China’s business and industrial activities in the world’s largest factory also slowed down. Obviously, to get out of this, China has started taking big steps, the effect of which is also visible.
Tags: business news, china news, stock market, stock market today
FIRST PUBLISHED: October 11, 2024, 09:49 IST