US economy’s ‘growth slowdown’ likely to affect Indian IT sector in short to medium term, says Geojit’ Vinod Nair
The relationship between the Indian and US stock markets has evolved significantly, reflecting the distinct economic landscapes and market dynamics of each country. Recently the rolling 1years correlation equation of India to the US stock market has reduced to 0.10 after peaking at 0.96 in Sept 2024. Over the past six months in particular, the two markets have exhibited divergent behaviour, moving in opposite directions—a departure from their historical pattern.
If we go by the long-term correlation of India to the U.S., it is relatively high at 0.97 in the last 10 years, which is as perfect, while it is relatively low at 0.70 in the century.
