India’s stock market value has already dropped by nearly 20% since its January peak of about $ 3.7 billion.
With rising inflation and the end of global monetization policy sending Indian stocks down from the top, three charts show that pain will not end anytime soon.
The S&P BSE Sensex Index fell more than 15% from its high in October, approaching a 20% loss target for the bear market. The selloff comes as rising costs and a record decline in the rupee have forced the central bank to join international peers in raising interest rates.
India’s stock market value has already dropped by nearly 20% from its January peak of about $ 3.7 billion. The unsustainable economic situation coupled with the unprecedented migration of foreign investors and income levels that seem poised to undermine the idea of ​​a return on investment.
Benaifer Malandkar, chief investment officer at Raay Global Investments Pvt. Stated that We expect the markets to continue to adjust from here. It is expected that in the second quarter, the worst news, the Fed’s actions will be priced.
Foreigner Flight
Overseas investors have been trading Indian stocks at record speeds, extracting nearly $ 32 billion from the market since September. The immigration crisis is part of a wave that is affecting countries including South Korea and Taiwan.
Malaykar of Raay Global Commented that India is not alone as it is part of a growing market, and obviously EMs do not like it. Until the US Fed rate is high, we will see redemptions occur across all EMs.
Rosy Estimates
The decline in Indian stocks has been largely due to the reduction in valuation to date. NSE Nifty 50 Index earnings will continue to diminish a reasonable decrease similar to that seen in the broader MSCI Inc. rating. of Asian stocks.
A few weeks ago, strategists at Sanford C. Bernstein Ltd., Bank of America Corp. and JPMorgan Chase & Co. have expressed concern over the prospect of revenue surrounding India. While waiting for any duplication of measurement, a reduction in the rate is likely to lower the stock. Analysts Miss Point Point at Indian Profit: Stocktaking
Suffering Small-Caps
Small stocks have been hit hard by the disgust of investors, as small and medium Indian stock exchanges have already entered the bear markets. Market volatility has weakened, as only 16% of the S&P BSE 500 index is trading above its 200-day average level, the lowest level in two years.
stock market
It is a place where the normal activities of buying, selling, and issuing shares of publicly owned companies take place. In the stock market, one can also trade financial instruments such as derivatives, bonds, mutual funds, and listed company shares.
The stock exchange is a meeting place for buyers and sellers of trades. In India, the main stock exchanges are the National Stock Exchange and the Bombay Stock Exchange.
Types of Stock Market
Primary market:
The primary market is when a company first registers to raise money and issue a certain number of shares or bonds. It is in this market that firms float new shares and bonds in public for the first time. When a company decides to list its shares for the first time this is known as an initial public offering (IPO).
One way a company can raise money in the first market is to grant rights or problems. The granting of rights (issue) allows companies to raise additional equity with the primary market after having securities in the secondary market.
Second Market:
After the company’s stocks or securities have been sold in the primary market, they are then sold in the secondary market. Investors trade in securities issued previously without the involvement of companies. In the second market, an investor buys shares with another investor at an existing market price at any price that both buyer and seller agree on.
In India, the primary and secondary markets are regulated by the Security and Exchange Board of India (Sebi).
