The Monday blues turned particularly lucrative for India as the nation’s stock market woke up to stunning price metrics. India’s SENSEX is currently up by 2000 points, indicative of an increase of 3%. With a promising surge noted in India’s stock market, it seems that the ASEAN nation Singapore may have extracted most of the profits out of this notable stock spike as one of the biggest foreign investors in India.
The surge further signals ASEAN’s competitive streak in an international domain. At the same time, the methodology also denotes the growing expanse of regional supremacy, supremacy, which, in the end, could truly spell trouble for the US economy and the USD.
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The Indian Stock Market Rises, ASEAN Reaps The Profits
The Indian stock market is thriving as the nation is currently betting big on PM Modi’s euphoric electoral win. The exit polls, or media surveys that predict which electoral alliance will possibly win the big Prime Minister race, have placed their bets on PM Modi, inviting a surge of new financial activity in the Indian stock market.
The said scenario was earlier predicted by Samir Arora, the founder of Helios Capital. Arora had shared how the electoral bets and predictions made by exit polls could positively disrupt the financial markets of India, inviting a new surge of activity in the space.
Per Arora, FIIs, or foreign investments in India, collectively make up US$800 billion in the Indian market. With Modi’s win on the cards, Arora outlined a compelling insight. He shared how this scenario could fetch $16 billion from investors if the market surged even by 2%. The prediction was later proven to be correct, as India’s SENSEX rose nearly 3% at press time, ushering in $16 billion worth of profits to its foreign holders.
“FIIs have more than US$800 billion in Indian stocks. If the market goes up 2%, they will make US$16 billion tomorrow. How much do you think they lose on their shorts?”
Per recent statistics, Singapore, which is a prominent ASEAN nation, is one of the biggest foreign investors in India. With the recent Sensex surge, Singapore may have potentially made most of its moolah out of this spike. This indicates several lucrative methodologies that the ASEAN bloc is adapting to grow their global dominions and pace.
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USD: The Eroding Dynamics
With China dumping US bonds and the BRICS alliance growing strong, the US economy is currently standing at a precarious threshold. The US dollar is now being gnawed from all corners, with regional currencies giving stiff competition to the USD. The nations are now promoting a multipolar narrative, including the ASEAN, which is actively voicing that the bloc should ditch the USD to promote regional currency dynamics.
Furthermore, stating the primary reasons for this change, the ability of the US to weaponize the US dollar tops it all. It has been dubbed the last straw for the bloc to devise ways to evade ASEAN -USD usage.
“Be very careful. We must remember the sanctions imposed by the US on Russia. Visa and Mastercard could be a problem,” Indonesian Prime Minister Widodo shared during an event.
At the same time, the Indian Rupee has surged 42 Paisa against the US Dollar, as the USD weakened after soft data revelations.
In the previous quarter, the government of Singapore expanded its ownership in the Indian finance market. Per recent statistics, Singapore has explored ownership in nearly 17 firms. Additionally, the nation has also acquired stakes in seven stocks, including Max Healthcare Institute and Sami Hotels. If the alliance continues to capitalize on changing market trends, ASEAN could soon bypass the USD in terms of popularity and global market repute.