Mumbai: The second quarter ended on September 30, 2015, has turned out to be the worst quarter for the domestic equity markets since December 2011 as persistent selling by foreign portfolio investors amidst concerns about a China led global growth slowdown resulted in a six per cent drop in both the Sensex and Nifty.
However, market participants feel that that coming quarter may not be as bad as the previous quarter as the volatility in the global markets has come down and the upcoming festive season is likely to boost economic activities in India.
The World Economic Forum also considers India along with South Africa as the “bright spots” among larger emerging markets, as both these countries saw large improvement in the global competitiveness index compiled by World Economic Forum, while the trend for their peer countries is either one of decline or stagnation.
“India ended five years of decline with a spectacular 16-place jump to 55th,” WEF said. India’s economic performance could be better in the next quarter. Exuding confidence in the Indian economy and markets, Mirae Asset Global chief investment officer Gopal Agrawal said: “I am quite optimistic about the coming quarter as the world markets are showing signs of stability. Moreover, the rout in the global commodity prices is almost over and the global markets have mostly priced in the expected hike in interest rate by the US Federal Reserve.
With the RBI cutting interest rates, banks are expected to pass on the benefit ahead of the festive season, which could act as a major sentiment booster.”
