What's going on?

With China�s massive stock market sell off continuing, India has become an unexpected destination for investors to park their money. Indian stocks have risen over the past three months and done so with much less volatility than their Chinese counterparts.

What does this mean?

As the Chinese economy performs worse than expected and the volatility in Chinese stock prices continue, more investors see India as a good alternative in the �emerging markets� space. This is despite significant reforms that have been promised but, as of yet, gone unfulfilled by the relatively new Indian Prime Minister Narendra Modi.

Why should I care?

1. Many analysts believe that it will be a long and volatile process before high Indian growth is realized. Despite promises to the contrary, there have so far been few changes in bureaucratic �red tape� and corporate earnings have largely disappointed.
2. However, others are betting that investors will see fruits of the Prime Minister�s reform agenda in the near future and some emerging market investors are focusing their investments on India, particularly as the situation in China deteriorates.
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