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US President Trumps administration appointees, including Elon Musk, David Perdue, and Marco Rubio, offer divergent views on China. Notably, Musk has strong business ties with China, while Rubio and Waltz adopt a hardline stance. Perdue's diplomatic experience is seen as a potential stabilising factor.
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If we adjoin that trend line, the support comes in at around today's low only. But overall, the way it has come down from the higher levels, it looks like that the bears are having more dominance right now and the chances of going down looking higher than from here.
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When you look at the relative valuations, India in relation to Asia ex-Japan, that argument becomes even more egregious. India is on a forward PE basis trading at about 62% premium to Asia ex-Japan. The long-term average is 38%. On price to book it is between 80% to 90% premium.
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