Rudra Investment: Nifty Second In The World In Terms Of Dollar Returns

The Research Team of Rudra Investment Expert said Since October, the Indian stock market gave a return of 10.8% in the dollar

In the meantime, the Indonesian stock market received a return of 16.6% in the dollar

Compared to these, the market of France, Germany, America, UK, and Japan declined by 7-10%.

Nifty's dollar return is consistently higher than returns received in rupees. This has made India second in terms of returns in the top 15 markets of the world in the past two months. Data collected by ETIG shows that since October 9 last year, the dollar return is 11% higher than the rupee. Since October 9, the rupee has gained 7.88% compared to the US currency. The biggest role in the dollar returns is that of the large-cap companies, whose cash flow is high, which has a dominant market value and whose return ratios are attractive. These include ICICI Bank, Bajaj Finance, Axis Bank, Hindustan Unilever, HDFC and Larsen Ent Tubro. The performance of these stocks has been excellent since October due to the rupee strengthened against the US currency.

Nifty has seen a nominal increase of 2.05% in the last year, while in dollar terms it dropped 5.75%. In October last year, the rupee had fallen to a low of 74.4 percent from the dollar, after which it has received 7.88 percent recovery.

Foreign investors see the dollar return of that market before investing anywhere. Therefore, the Indian stock market remains attractive for them as compared to other emerging markets. Holding foreign investors in the free float of the Nifty is 45%. This indicates how much the index performance in the dollar term matters to them. Since October of last year, shares of Nifty companies have risen 9-32% in the share price. This shows how many foreign investors have benefited on their investment in the meantime.

According to Rudra Investment data released on Friday, With India, the Indonesian market has given strong returns in the dollar since October 9. The Indian market has given a return of 10.8% in the meantime. Indonesia's dollar return in emerging markets has been the highest with 16.6%. Compared to these, the stock market of France, Germany, USA, UK, and Japan declined by 7-10% since October last year. ETIG's analysis shows that since the last round of rupee depreciation, the returns of 20% of the FII invested in Nifty, which has more investment in the Nifty, have received returns of more than 20%. These include HDFC, ICICI Bank, Axis Bank, HUL and Bajaj Finance. In rupee, ICICI Bank, Axis Bank, and Bajaj Finance have risen more than 20%.

At the same time, Bajaj Finance has given the highest return of 40.6% in the last one year. The company's return in the dollar has been 27% during this period. However, since October 9, Bajaj Finance has given a return of 29.3% and a 22.5% return in rupees.