Shah’s comment came in the backdrop of several US-listed Chinese companies seeing a cumulative drop of over $800 billion in their market capitalisation from their peak, due to strict regulations brought in by the US as well as Chinese authorities.
Recent high-profile collapse of stocks such as Chinese ride-hailing company Didi has brought attention to the high risks involved in investing in US-listed shares of Chinese companies.
In India, Zomato has kicked off the entry of new-age internet companies in India’s capital market with its IPO that opened on Wednesday. The issue has drawn strong response from retail and institutional investors, and the issue was fully subscribed on the first day itself. As of Thursday, the public issue was subscribed 4.8 times, as per data on the NSE.
“New age companies’ successful listing can lead to a re-rating of many existing companies, which can pull the market higher from current levels,” Shah said.
Indian equity indices ended at their record highs on Thursday driven by inflows from retail investors and gains in information technology companies and banks.
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