The Dow Jones Industrial Average ended 5.2 percent lower last week while India's benchmark Nifty 50 shed only 2.8 percent.
That's because the correlation coefficient—a measure of comparative fluctuations— between the two gauges is moderate. It stands at just 0.55 on a weekly basis.
That means Nifty rises or falls nearly half the level of Dow Jones. In comparison, European, and other Asian benchmarks like Singapore and Japan have a higher correlation with Dow Jones.
Among Asian peers, Singapore FTSE Index is the most closely correlated to Nifty at 0.72. In the last five days, Singapore FTSE gained nearly 1 percent and the Nifty rose a little over 0.7 percent.
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