India is shaping up to be a destination for investors seeking, relative shelter from financial volatility linked to the US election according to a detailed report by Bloomberg.

A steady influx of foreign capital has positioned the nation’s bonds among top performers in developing markets this year, while the country’s stock market hit a record high last month, buoyed by robust domestic liquidity, the Bloomberg report detailed further. Further, India’s appeal is driven by a blend of structural factors: stable political ties with both the US and Russia, capital controls that curb hot money flows, and a currency that’s less impacted by big dollar moves than emerging market peers.

India’s divergence from global markets was evident last week when its sovereign bonds remained relatively steady despite a global selloff in US Treasuries. The nation has become a key emerging market bet for abrdn plc., particularly ahead of the US presidential election on Nov. 5, as hedge funds brace for a pickup in global volatility.

“India’s local bond market is relatively insulated from the volatility of global markets, remaining peaceful amidst the storm,” said Edward Ng, a bond fund manager at Nikko Asset Management Co. “Given the market’s low volatility, we remain comfortable staying invested in Indian bonds,” which may outperform in a strong-dollar environment, he said.

Currency is a key pillar of India’s resilience<o:p></o:p>

A key pillar of India’s resilience is its currency once one of Asia’s most volatile. For much of 2024, the rupee has been stuck between 82.8 and 84.1 per dollar due to the Reserve Bank of India’s interventions. Data compiled by Bloomberg show that the currency has only shaved 1 percentage point off the returns on Indian bonds this year, less than half the rate of currency-related losses on emerging market local-currency bonds overall.<o:p></o:p>

The rupee offers “minimal” volatility, Edwin Gutierrez, head of EM sovereign debt at Abrdn investments, said in an interview. “In this world of uncertainty, it ain’t a bad place to be.”

To be sure, India isn’t a hotspot for global equity investors right now. Signs of a slowdown in the country’s robust economic growth and a rebound in Chinese stocks have led to outflows of $8.8 billion from local shares in October, set for a record. While domestic investors’ purchases have evened out foreign outflows, the stock market is still on track for its worst month since March 2020.

The selloff hasn’t led to dramatic swings in the market. The 60-day historical volatility for the benchmark NSE Nifty 50 Index stands at 13.2 per cent, 1.95 percentage points lower than the S&amp;P 500 Index, indicating relative stability in comparison. UBS Global Wealth Management suggests the selloff is a buying opportunity as the soft patch in India’s growth and earnings appears transitory. The view followed Goldman Sachs Group Inc. tactically lowering local shares to neutral from overweight last week.<o:p></o:p>

India isn’t the only emerging economy offering a low correlation to global sentiment. Amundi SA and William Blair &amp; Company, LLC have said they favor frontier markets such as Nigeria and Kazakhstan, as potential buffers against US election-driven turmoil.

Yet these alternatives lack the liquidity and depth of India’s $1.3 trillion sovereign debt market and $5 trillion of stocks. The country is also expected to lure more offshore funds as part of its inclusion in JPMorgan’s bond index. BlackRock Inc. and Amundi SA have launched ETFs to ride that wave. India is due to join Bloomberg’s EM gauges in January.

“India local still screens fairly attractively to us,” compared with other assets globally like dollar-denominated debt, said Leonard Kwan, portfolio manager of T. Rowe Price Group Inc.’s dynamic EM bond strategy. “We’re overweight rather than in line with the benchmark” on India. Market participants and global investors are going to follow these developments carefully and make informed investment decisions with regard to India as an investment destination.

<o:p>&nbsp;</o:p>

India is shaping up to be a destination for investors seeking, relative shelter from financial volatility linked to the US election according to a detailed report by Bloomberg.

India is shaping up to be a destination for investors seeking, relative shelter from financial volatility linked to the US election according to a detailed report by Bloomberg. A steady influx of foreign capital has positioned the nation’s bonds among top performers in developing markets this year, while the country’s stock market hit a record high last month, buoyed by robust domestic liquidity, the Bloomberg report detailed further. Further, India’s appeal is driven by a blend of structural factors: stable political ties with both the US and Russia, capital controls that curb hot money flows, and a currency that’s less impacted by big dollar moves than emerging market peers. India’s divergence from global markets was evident last week when its sovereign bonds remained relatively steady despite a global selloff in US Treasuries. The nation has become a key emerging market bet for abrdn plc., particularly ahead of the US presidential election on Nov. 5, as hedge funds brace for a pickup in global volatility. “India’s local bond market is relatively insulated from the volatility of global markets, remaining peaceful amidst the storm,” said Edward Ng, a bond fund manager at Nikko Asset Management Co. “Given the market’s low volatility, we remain comfortable staying invested in Indian bonds,” which may outperform in a strong-dollar environment, he said. Currency is a key pillar of India’s resilience A key pillar of India’s resilience is its currency once one of Asia’s most volatile. For much of 2024, the rupee has been stuck between 82.8 and 84.1 per dollar due to the Reserve Bank of India’s interventions. Data compiled by Bloomberg show that the currency has only shaved 1 percentage point off the returns on Indian bonds this year, less than half the rate of currency-related losses on emerging market local-currency bonds overall. The rupee offers “minimal” volatility, Edwin Gutierrez, head of EM sovereign debt at Abrdn investments, said in an interview. “In this world of uncertainty, it ain’t a bad place to be.” To be sure, India isn’t a hotspot for global equity investors right now. Signs of a slowdown in the country’s robust economic growth and a rebound in Chinese stocks have led to outflows of $8.8 billion from local shares in October, set for a record. While domestic investors’ purchases have evened out foreign outflows, the stock market is still on track for its worst month since March 2020. The selloff hasn’t led to dramatic swings in the market. The 60-day historical volatility for the benchmark NSE Nifty 50 Index stands at 13.2 per cent, 1.95 percentage points lower than the S&P 500 Index, indicating relative stability in comparison. UBS Global Wealth Management suggests the selloff is a buying opportunity as the soft patch in India’s growth and earnings appears transitory. The view followed Goldman Sachs Group Inc. tactically lowering local shares to neutral from overweight last week. India isn’t the only emerging economy offering a low correlation to global sentiment. Amundi SA and William Blair & Company, LLC have said they favor frontier markets such as Nigeria and Kazakhstan, as potential buffers against US election-driven turmoil. Yet these alternatives lack the liquidity and depth of India’s $1.3 trillion sovereign debt market and $5 trillion of stocks. The country is also expected to lure more offshore funds as part of its inclusion in JPMorgan’s bond index. BlackRock Inc. and Amundi SA have launched ETFs to ride that wave. India is due to join Bloomberg’s EM gauges in January. “India local still screens fairly attractively to us,” compared with other assets globally like dollar-denominated debt, said Leonard Kwan, portfolio manager of T. Rowe Price Group Inc.’s dynamic EM bond strategy. “We’re overweight rather than in line with the benchmark” on India. Market participants and global investors are going to follow these developments carefully and make informed investment decisions with regard to India as an investment destination.

Global investors turn to India amid rising financial market uncertainty

In recent years, the integration of artificial intelligence (AI) into various aspects of our lives has been nothing short of revolutionary. From automating tasks to enhancing decision-making processes, AI has entered every sector, including finance.

In recent years, the integration of artificial intelligence (AI) into various aspects of our lives has been nothing short of revolutionary. From automating tasks to enhancing decision-making processes, AI has entered every sector, including finance. In India, the use of AI in investment management is rapidly gaining momentum, offering investors a hassle-free and efficient way to navigate the complexities of the financial markets. However, it is still not error-free. Investing has traditionally been perceived as a daunting task, often requiring a deep understanding of market dynamics, economic indicators, and regulatory frameworks. However, with the advent of AI, you now have access to sophisticated tools and algorithms that can help you make informed decisions tailored to their financial goals and risk tolerance. One of the key benefits of leveraging AI in investment management is its ability to analyse vast amounts of data in real-time. By utilising machine learning algorithms, these platforms can scan trends and patterns that may impact investment performance. This data-driven approach enables investors to stay ahead of market movements and make timely adjustments to their portfolios. AI possesses the ability to swiftly respond to your questions. Additionally, AI is capable of generating personalised budget tables, streamlining your financial planning process. With its versatility, AI can undertake various tasks, facilitating time-saving measures and helping prompt decision-making when needed. The budget table created below took seconds to get generated. You can also use prompts based on your requirements and make your investment more effective. Monthly Budget for an Indian Investor Category Budget Allocation (Rs) Actual Expenses (Rs) Income Salary Your Monthly Income Expenses Housing Utilities Food & Groceries Transportation Healthcare Education Entertainment Savings Investments Total Expenses Sum of Expenses Savings & Investments Emergency Fund Retirement Fund Other Investments Remaining Income Income - Total Expenses By gathering information about an investor’s financial situation, investment horizon, and risk appetite, the AI can tailor investment strategies to meet specific needs. Whether it’s building a diversified portfolio, optimising asset allocation or rebalancing investments. Leveraging AI in investment decision-making provides a significant advantage, given its ability to swiftly analyse vast datasets that may be overlooked by human analysts. With the capacity to detect patterns and trends, AI algorithms can scrutinise diverse data sources, ranging from social media sentiment to financial statements and help you assess your investment decisions. Furthermore, AI-powered investment platforms offer a level of automation that simplifies the investment process for users. Through features like automatic portfolio rebalancing, dividend reinvestment, and tax-loss harvesting, investors can minimise the administrative burden associated with managing their portfolios. This hands-off approach not only saves time but also ensures that investments are continuously optimized to maximise returns while minimising risk. Another significant advantage of AI-driven investment platforms is their ability to mitigate behavioural biases that often lead to irrational investment decisions. By removing human emotions from the equation, AI algorithms can make objective assessments based on data and historical trends. This helps prevent investors from succumbing to fear, greed, or other cognitive biases that may cloud judgment and lead to poor outcomes. AI-powered investment is also proving to be invaluable tools for financial advisors and wealth managers. By leveraging AI to augment their advisory services, professionals can deliver more personalised and data-driven recommendations to clients. Whether its identifying new investment opportunities, assessing portfolio risk, or conducting scenario analysis. AI-driven investment platforms play a crucial role in democratising access to financial markets. Traditionally, sophisticated investment strategies and wealth management services were expensive. However, with AI-powered platforms offering low-cost solutions and minimum investment requirements, retail investors of all backgrounds can now participate in the wealth creation process. When we look ahead, the future of AI in investment management appears promising. As technology continues to evolve and AI algorithms become more sophisticated, we can expect further advancements. Additionally, regulatory initiatives aimed at fostering innovation and ensuring consumer protection are likely to drive the adoption of AI-powered investment solutions across the country. Whether you’re a seasoned investor or just starting your investment journey, harnessing the power of AI can help you achieve your financial goals.

Expert Voice: Simplifying your investment journey with AI

Taliban have sought Indian investment and revival of New Delhi-supported infrastructure projects in the country during a meeting last week.&nbsp;

The meeting took place between the Taliban's minister for Urban Development and Housing (MUDH) Hamdullah Nomani and the head of India's technical team in the country, Bharat Kumar.&nbsp;

Taliban's Suhail Shaheen told WION, "meeting focused on matters relating to the resumption of the work of incomplete projects previously initiated by India. Also, Indian participation in investment in building new Kabul city." He also assured of the security of Indian investment in the country.&nbsp;

India in the past has been responsible for major infrastructure projects in the country, from the Parliament building in Kabul to the India-Afghanistan friendship dam in Herat.&nbsp;

Around 433 High Impact Community Development Projects have been completed with Indian financial support in all 34 provinces of Afghanistan.&nbsp;

During FY 2019-20, 37 projects were completed in various provinces of Afghanistan under the High Impact Community Development Project (HICDP) scheme of the Indian government.&nbsp;

After the Taliban takeover of Afghanistan in August last year, the implementation of projects was impacted. New Delhi had also evacuated its diplomats out of the country after the Taliban's come back.

In June, India announced that it will deploy its technical team with a focus on the delivery of humanitarian assistance.

"India has a historical and civilizational relationship with the Afghan people. In order to closely monitor and coordinate the efforts of various stakeholders for the effective delivery of humanitarian assistance and in continuation of our engagement with the Afghan people, an Indian technical team has reached Kabul", MEA in a statement had said. The team consists of diplomats and other officials.&nbsp;

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Taliban have sought Indian investment and revival of New Delhi-supported infrastructure projects in the country during a meeting last week. The meeting took place between the Taliban's minister for Urban Development and Housing (MUDH) Hamdullah Nomani and the head of India's technical team in the country, Bharat Kumar.

Taliban have sought Indian investment and revival of New Delhi-supported infrastructure projects in the country during a meeting last week. The meeting took place between the Taliban's minister for Urban Development and Housing (MUDH) Hamdullah Nomani and the head of India's technical team in the country, Bharat Kumar. Taliban's Suhail Shaheen told WION, "meeting focused on matters relating to the resumption of the work of incomplete projects previously initiated by India. Also, Indian participation in investment in building new Kabul city." He also assured of the security of Indian investment in the country. India in the past has been responsible for major infrastructure projects in the country, from the Parliament building in Kabul to the India-Afghanistan friendship dam in Herat. Around 433 High Impact Community Development Projects have been completed with Indian financial support in all 34 provinces of Afghanistan. During FY 2019-20, 37 projects were completed in various provinces of Afghanistan under the High Impact Community Development Project (HICDP) scheme of the Indian government. After the Taliban takeover of Afghanistan in August last year, the implementation of projects was impacted. New Delhi had also evacuated its diplomats out of the country after the Taliban's come back. In June, India announced that it will deploy its technical team with a focus on the delivery of humanitarian assistance. "India has a historical and civilizational relationship with the Afghan people. In order to closely monitor and coordinate the efforts of various stakeholders for the effective delivery of humanitarian assistance and in continuation of our engagement with the Afghan people, an Indian technical team has reached Kabul", MEA in a statement had said. The team consists of diplomats and other officials. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Taliban seek Indian investment and resumption of projects

China on Thursday objected to Vietnam&#39;s invitation to India to invest in oil and natural gas sector in the disputed South China Sea + (SCS), saying it is firmly opposed to infringement of its rights using development of bilateral ties as an &quot;excuse&quot;.

Vietnam&#39;s Ambassador to India Ton Sinh Thanh on Tuesday had told an Indian news channel that his country would welcome Indian investments in the South China Sea.

Responding to remarks, Chinese Foreign Ministry spokesman Lu Kang said: &quot;China does not object to the development of normal bilateral relations of relevant countries in our neighbourhood&quot;.

&quot;But China firmly opposes relevant party to use it as an excuse to infringe upon China&#39;s legitimate rights and interests in the SCS and impair regional peace and stability,&quot; Lu said.

Ton had also said defence cooperation is one of the important and effective areas of cooperation between India and Vietnam and India can be helpful in expanding Vietnam&#39;s defence capabilities.

China has been opposing India&#39;s Oil and Natural Gas Corporation (ONGC) exploring oil+ in wells claimed by Vietnam in the SCS for years. India has been asserting that the ONGC&#39;s exploration is a commercial operation and not connected with the dispute.

China claims almost all of the SCS while Vietnam, the Philippines, Malaysia, Brunei and Taiwan have counterclaims.

Oil exploration in the SCS is a sensitive issue in the Vietnam-China relations. There were anti-China riots in Vietnam when China tried to deploy oil rigs in an area claimed by Vietnam a few years ago.

India, which is ramping up ties with Vietnam, calls for freedom of navigation in the SCS through which trillions of dollars of trade happens every year.

Vietnam's Ambassador to India Ton Sinh Thanh had said that his country would welcome Indian investments in SCS

China on Thursday objected to Vietnam's invitation to India to invest in oil and natural gas sector in the disputed South China Sea + (SCS), saying it is firmly opposed to infringement of its rights using development of bilateral ties as an "excuse". Vietnam's Ambassador to India Ton Sinh Thanh on Tuesday had told an Indian news channel that his country would welcome Indian investments in the South China Sea. Responding to remarks, Chinese Foreign Ministry spokesman Lu Kang said: "China does not object to the development of normal bilateral relations of relevant countries in our neighbourhood". "But China firmly opposes relevant party to use it as an excuse to infringe upon China's legitimate rights and interests in the SCS and impair regional peace and stability," Lu said. Ton had also said defence cooperation is one of the important and effective areas of cooperation between India and Vietnam and India can be helpful in expanding Vietnam's defence capabilities. China has been opposing India's Oil and Natural Gas Corporation (ONGC) exploring oil+ in wells claimed by Vietnam in the SCS for years. India has been asserting that the ONGC's exploration is a commercial operation and not connected with the dispute. China claims almost all of the SCS while Vietnam, the Philippines, Malaysia, Brunei and Taiwan have counterclaims. Oil exploration in the SCS is a sensitive issue in the Vietnam-China relations. There were anti-China riots in Vietnam when China tried to deploy oil rigs in an area claimed by Vietnam a few years ago. India, which is ramping up ties with Vietnam, calls for freedom of navigation in the SCS through which trillions of dollars of trade happens every year.

China objects to Vietnam's call for Indian investment in South China Sea