The Indian stock market has been struggling for a while now. Last year, it began to drop, and things have only gotten worse. Many well-known companies, even those considered safe investments, are losing value. A report showed that about 70 out of the top 100 Indian stocks have dropped by 10% or more in just three months, and some have lost as much as 55%!
Since reaching its highest point in September, the Nifty index has fallen around 14%. This year, it is already down over 2%, and only a few stocks—mainly big IT companies like Infosys, HCL Tech, Wipro, and Tech Mahindra—have posted gains during this tough time.
On the downside, major companies like Reliance, ITC, and others saw their stock prices fall between 15% and 55%. A big reason for the market drop is that many companies are not earning as much money as expected. In fact, during July to September, more than half of the companies in the Nifty50 index either missed expectations or just met them, showing the market’s struggle.
Many foreign investors pulled out more than $20 billion during this downturn, making things even harder.
Deepak Shenoy, a well-known investor, mentioned that even solid companies are feeling the heat in this market. He believes that while things are rough now, it could be good news for the market’s future.
Looking ahead, the expectation that the U.S. Federal Reserve might not lower interest rates as much could lead to more money leaving markets like India’s. These global factors, along with changes in U.S. leadership, will affect how emerging markets perform.
Despite the challenges, Emkay Global predicts that things might improve after March, especially as companies start making better earnings. They think some stocks like Lupin, IndusInd Bank, Zomato, and Tata Motors could do well once the market stabilizes
Leave a Reply