Domestic equity markets are now one of the worst performing markets globally in 2015 till date.
NSE Nifty was also trading down at 98 points, or 1.23 points to 7,856.30 (Representational Image)
Mumbai: From being the second best performing markets in 2014 after China, the domestic equity markets are now one of the worst performing markets globally in 2015 till date as slow pace of promised reforms, subdued corporate earnings and concerns regarding a rate hike by the US Federal Reserve triggered a bout of profit booking and also slowed down the pace of foreign fund inflows to domestic equities. While the Sensex has slumped 8.93 per cent this year, the broader NSE Nifty fell 8.12 per cent. Most of the emerging markets have also seen a steep decline during this time, some of the developed markets have managed to deliver positive returns. For instance, Japan’s Nikkei 225 has gained 10.2 per cent while Nasdaq Composite and Germany’s DAX Index have rallied 4.17 per cent and 5.45 per cent respectively.
“In 2014, the Indian equity markets rallied higher way ahead of domestic fundamentals on expectation that the new government at the Centre would accelerate economic reforms, that would boost domestic economic growth and corporate earnings. However, there was disappointment on both these fronts. The government failed to move ahead with critical reforms like Land Bill and Goods and Services Tax (GST).
On the other hand, the corporate earnings also failed to pick up momentum and keep pace with rich valuations, which led to sharp correction in stock prices,” said Gopal Agrawal, chief investment officer (CIO), Mirae Asset Global Investments. However, Mr Agrawal is quite optimistic about FY 17, as he believes that the worst is over for India Inc. “Going ahead, we could see improvement in corporate earnings growth. Additionally, some of the pending reforms would also get initiated, which will definitely boost investors sentiment,” he added.
Download the all new Deccan Chronicle app for Android and iOS to stay up-to-date with latest headlines and news stories in politics, entertainment, sports, technology, business and much more from India and around the world.
( Source : deccan chronicle )
Next Story
