With Chinese stocks enjoying their biggest meltup since 2008, and in some cases, ever, Indian's Nifty index just slumped 4.5% and had its worst week since June 2022. Not surprisingly then, Goldman India desk trader Nikhilesh Kasi writes that the #1 question from clients in the last 2 weeks is "Are we seeing rotation out of India into China?” The answer, Kasi writes, is unequivocally “Yes” judging by the flow that we have seen but before that some context.
Below we excerpt from his Sunday morning note.
