September 21, 2023: The ongoing diplomatic row between Canada and India has taken a toll on the stock market, with six stocks owned by the Canada Pension Plan Investment Board (CPPIB) trading in the red on Wednesday.
The CPPIB is a Canadian Crown corporation that manages the Canada Pension Plan, a public pension fund providing Canadians with retirement income. The CPPIB has investments in over 5,000 companies worldwide, including India.
The six CPPIB-owned stocks that traded in the red on Wednesday were:
Kotak Mahindra Bank
Zomato
Delhivery
Indus Towers
FSN E-Commerce Ventures
Nykaa
These stocks are all listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE).
The decline in the stock prices of these companies comes amid a broader sell-off in Indian markets, triggered by several factors, including the Canada-India row, rising inflation, and concerns about a global economic slowdown.
The Canada-India row began in December 2022, when Indian Prime Minister Narendra Modi was asked about the alleged persecution of Sikhs in Canada. Modi said that he was “deeply concerned” by the reports and would raise the issue with the Canadian government.
The Canadian government has denied any persecution of Sikhs in Canada. However, the row has escalated recently, with both sides exchanging diplomatic barbs.
The diplomatic row has harmed economic relations between Canada and India. In January 2023, India imposed a ban on wheat imports from Canada. India has also reportedly delayed the approval of Canadian investments in India.
The Canada-India row will likely continue to weigh on the stock prices of CPPIB-owned stocks and the Indian stock market as a whole.
Implications of the Canada-India Row for the Global Economy
The Canada-India row is a significant development for the global economy. Canada and India are two of the world’s largest economies, and the row has the potential to disrupt trade and investment between the two countries.
The row could also have a ripple effect on the global economy. If trade and investment between Canada and India are disrupted, it could lead to higher prices for goods and services in both countries. This could hurt businesses and consumers around the world.
The Canada-India row is also a reminder of the importance of good diplomatic relations between countries. When two countries have a good relationship, it is easier for businesses to trade and invest between the two countries. This can lead to economic growth and prosperity for both countries.
Conclusion
The Canada-India row is a significant development for the global economy. The row has the potential to disrupt trade and investment between the two countries and could also have a ripple effect on the worldwide economy.
The row is also a reminder of the importance of good diplomatic relations between countries. When two countries have a good relationship, it is easier for businesses to trade and invest between the two countries. This can lead to economic growth and prosperity for both countries.
It remains to be seen how the Canada-India row will play out. However, the row is a significant development for the global economy.
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