Technoglitch
Core Member
A 723-point, or 2.63%, fall in the Sensex to its lowest point this year may seem like a sharp and sudden fall, but Indian equities had it coming for quite some time now. The difficulties being faced by the new government and the lack of traction in company earnings are increasingly showing up in the market’s dips. Local equities are the worst performing major market this year, as is evident from chart 1. The Modi magic is fading from the markets.
A major concern is that despite the new GDP (gross domestic product) numbers promising a wonderful year, demand continues to remain soft indicating that expectations from the change of guard at the centre are waning.
In contrast, after the initial euphoria in India, markets have come to face a more sober reality. While there is no danger of an immediate oil shock, crude oil prices have also gained over 40% since their lows of last year.
Foreign institutional investors, who were gung-ho on India not too long ago, have become bearish owing to lack of recovery in economic fundamentals
The stock markets had it coming - Livemint
A major concern is that despite the new GDP (gross domestic product) numbers promising a wonderful year, demand continues to remain soft indicating that expectations from the change of guard at the centre are waning.
In contrast, after the initial euphoria in India, markets have come to face a more sober reality. While there is no danger of an immediate oil shock, crude oil prices have also gained over 40% since their lows of last year.
Foreign institutional investors, who were gung-ho on India not too long ago, have become bearish owing to lack of recovery in economic fundamentals
The stock markets had it coming - Livemint
