US Market Shocks Can Impact Indian Portfolios

The Indian Economic Survey 2025 highlights that high participation of Indian investors in US markets may amplify the effects of a US stock correction domestically.

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US Market Shocks Can Impact Indian Portfolios

US Market Shocks Can Impact Indian Portfolios
The Indian Economic Survey 2025 emphasizes that strong participation of Indian investors in US equities could amplify domestic market impacts in the event of a US stock correction. Since US stocks constitute a major portion of the MSCI World Index, any volatility abroad is likely to influence Indian equity sentiment. This effect is particularly significant for new retail investors who may lack experience with prolonged market corrections, potentially leading to reactive selling or heightened market nervousness in India.
Companies:
  • MSCI
Tags:
  • economy
  • global