Tue Sep 24 03:47:59 UTC 2024: ## Indian Equities Soar on China Stimulus, US Rate Cuts: Hang Seng ETF Sees Surge

**Mumbai, India** – Indian stocks are poised for further gains, mirroring the positive sentiment in Asian markets fueled by China’s recent stimulus measures and anticipation of further interest rate cuts in the US. This optimism was evident in the Nifty futures, which surpassed the 26,000 level for the first time, building on Monday’s record-breaking climb.

**Hang Seng ETF: Seeking Higher Returns**

Indian investors, wary of high valuations in the domestic market, are turning to the East for potentially better returns. The Hang Seng Index ETF, managed by Nippon India Mutual Fund, has seen its assets double this year, reaching 5.3 billion rupees by August. The Hang Seng Index, trading at eight times one-year forward earnings, has surged over 20% since its lows in late January, seemingly validating the optimism fueled by China’s recent policy announcements.

**Algo Firms Flourish While Retail Traders Struggle**

India’s $4.6 trillion equity-derivatives market is witnessing a stark contrast in fortunes. While foreign investors and proprietary desks using algorithms reaped a whopping 588.4 billion rupees ($7 billion) in gross profits last fiscal year, 93% of individual traders faced losses, averaging 200,000 rupees each. This highlights the challenging environment for retail traders trying to compete against sophisticated algorithmic trading strategies.

**Clean Power Push Benefits Utilities**

India’s ambitious goal of achieving 500 GW of clean power capacity by 2030 is driving a shift towards firm and dispatchable renewable energy (FDRE), with 15 FDRE tenders for 20.9 GW already issued. This shift is leading to market consolidation and higher tariffs, benefiting companies like CESC, JSW Energy, and state players with expansion potential. The BSE utilities gauge is already up 40% this year.

**Foreigners Return to Indian Stocks**

Following the US Federal Reserve’s recent rate cut, global funds are increasing their bullish positioning on Indian stocks, leading to an influx of foreign investment. Global funds’ open interest reached a new peak of 9.7 trillion rupees ($116 billion) on Friday, and they also pumped in a net 140 billion rupees into the cash market.

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