One cannot ignore international markets given the global interdependence of economies. We regularly check how markets in the US, Asia, and elsewhere performed to predict our own market's direction. Our markets also rely heavily on investment from foreign institutional investors who get money from stockholders in their home countries, like 48% of Americans. As India grows faster than many other countries at 7-7.5%, foreigners see potential returns here. Additionally, our markets often react more strongly to news in global markets, falling over 1.5% when Japan provided no stimulus or the US raised interest rates. All these factors indicate one should not overlook opportunities in global markets.

1. So why invest in global markets?
One really cannot ignore the international markets or international stock exchange, especially when
we are talking about global economy and the interdependencies of various economies on each other.
Everyday before starting the trading journey, we are interested in how the US markets did
yesterday, how the Asian markets are doing in the morning and what is the status of SGX Nifty, the
Nifty product traded on the Singapore exchange? We predict whether we will go down, go up or
remain flat for the day based on this information.
Also, our markets are totally dependent on the Foreign Institutional Investors or commonly called
FIIs. Our markets react on the basis of whether the FIIs pumped in money or withdrew the money.
Who are these FIIs?
These are foreign institutions who invest in our markets huge sums of money. Where do they get all
this money from? So, here is some data to explain this further. About 48% of Americans invest in
stock markets either directly or through institutions. That is where they get all the money from. And
of course as our country is growing at 7% – 7.5%, every other foreigner would think of investing
here as their own country is growing at no more than 1 – 2%. A better economy leads to better
corporate growth which leads to better returns from the international stock markets.
And, our markets also react more to the news in the global markets than the news in our own
markets. The other day Bank of Japan did not give any stimulus and our markets fell by more than
1.5% in a single day. The Fed in the US increased interest rates and our markets went down. These
are just examples but you would have seen this a lot.
All these points, surely points to this – do not ignore the global markets.