The MSCI China Index has surged 26.5% from its January low, gaining nearly 18% this year, while the MSCI India Index has dropped more than 7% year-to-date.
“Every time China’s market rallies, India’s declines,” analysts note.
Over 50% of funds surveyed by Nomura reported reducing their investments in India by the end of January, while increasing their exposure to Chinese and Hong Kong stocks.