Vaccination rates are severely lagging developed markets across most emerging markets, while India is witnessing the worst surge in covid cases and deaths. “Asia or emerging markets (EMs) equities significantly underperformed global peers in the last six months and some of the valuation excess has abated. Indian equities have lost foreign institutional investor (FII) money worth nearly $2 billion in April and May after continued inflow since October. A key concern among Indian fund managers, while allocating money into equities, is that rising commodity prices may lead to inflationary pressure. They said the impact of the second covid wave of on the Indian economy and inflation are key risks for Indian equities.

Source: Mint May 24, 2021 18:00 UTC