US President Donald Trump’s trade feud with India could imperil the country’s stock market as it struggles to catch up to China, analysts said.
India’s index is on track for its largest annual underperformance since 2017 compared to its Chinese counterpart, Bloomberg wrote, and the gap between the countries’ markets has reached $6.3 trillion.
Investors had seen India as a new growth engine and an alternative to China, but now feel rattled by Trump’s attacks.
Indian equities fell after Trump vowed to hike duties on the country’s exports to 50%.
Foreigners pulled $3 billion out of Indian stocks last month, and Goldman Sachs recently forecast the country’s markets will keep underperforming.
AD