With India moving towards Self Reliance and Self Sufficiency (AtmanirbharBharat) made us rethink- How deeply will the global indices affect our domestic stock markets?
The Correlation between India (NSE100) and US Indexes is (ballpark) 0.88 and 0.80 with Asian peers.
I still remember the headline from 2013's Business Standard- "When the US Sneezes, India Catches Cold".
How do you think this correlation effect will play in the long-run? Though Institutional Investors consider Emerging Markets as a Diversification benefit but given the high correlation, it is similar to having an affair outside your married life - you just get the feel of it, no actual benefit.
Given the negative outlook coming from US Fed Chair, do we already discount the lower correlation as the markets open tomorrow?
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