India, US correlation weakens as equity markets take divergent path

Equity markets in India and the US have taken a divergent path over the past fortnight. The BSE Sensex has declined merely 2.5 per cent, even as the Dow Jones declined close to 8 per cent.

In July, the correlation-coefficient for both these markets had hit a 17-month high, signalling domestic stocks were marching in lockstep with their US peers.

During the first half of calendar year 2022, the Sensex had declined 9 per cent, while the Dow had declined 13 per cent.

Indian markets have withstood the latest global sell-off much better, triggered by the