As many as 142 stocks from the S&P BSE500 index are currently trading below their level of May 12, 2014
'While we note the very strong cyclical recovery in the economy, we believe there is still uncertainty over medium-term prospects.'
So, what does 2016 have in store for the Indian markets? Will they be able to take a giant leap forward in the leap year, and what are the key risks?
Fitch Ratings has cut India's economic growth forecast to 8.7 per cent for the current fiscal but raised GDP growth projection for FY23 to 10 per cent, saying the second COVID-19 wave delayed rather than derail the economic recovery. In its APAC Sovereign Credit Overview, Fitch Ratings said India's 'BBB-/Negative' sovereign rating "balances a still-strong medium-term growth outlook and external resilience from solid foreign- reserve buffers, against high public debt, a weak financial sector and some lagging structural factors". The 'Negative' outlook, it said, reflects uncertainty over the debt trajectory following the sharp deterioration in India's public finances due to the pandemic shock.
The S&P BSE Sensex ended at 24,900, down by 66 points.
On the contrary, the fall in the US markets was lower with the S&P 500 and Dow Jones both declining by around 9 per cent and 6 per cent respectively, while emerging markets lost around 18 per cent during the month. Pessimism in the financial markets following the filing for bankruptcy by Lehman Brothers, Merrill Lynch's sell-off, the AIG bailout and perceived uncertainty around the US bailout package added to investor fears.
The growth prospects are particularly high for Indian companies in the speciality and complex generic drugs segment in the US, the report said.
The S&P BSE Sensex ended up 232 points to settle above 27,000 at 27,010 for the first time since October 28, 2015.
India may see a structural shift in supplies of crude oil with Russia emerging as a key source of fuels, a development that reduces New Delhi's dependence on West Asian oil, gives Indian refiners better bargaining power with price-setter Saudi Arabia, and improves overall energy security. The unexpected surge in supplies of Russian crude in the last few months, unthinkable until the war in Ukraine, may also deliver other unforeseen gains such as boosting exports of refined fuels to Europe, which historically has counted on Russian shipments. India has jumped on to the bandwagon of opportunistic buying of Russian crude but if calibrated carefully, Urals crude can be a long-term asset for India refiners.
LIC owns 3.69 per cent of the total listed universe based on available disclosures, the lowest since at least June 2009.
Extending losses for 7th session, Nifty fell below the 8,000 mark for the first time since Nov 25
The eight Indian companies are part of S&P's list of 300 mid-size companies across 37 countries in the latest S&P Global Challengers List.
Geopolitical concerns, earnings sees investors rush to safe haven plays post the Union Budget presentation in July.
Aviation companies were in focus with all the three airliners SpiceJet, InterGlobe Aviation and Jet Airways adding in the range of 2% to 3% on the BSE
The Nifty PSU Bank pared losses to end flat after falling as much as 1.05%
'The pressure on relative performance and the feeling of being left out among many investors may also account for the belief among many that this has to be a technology stock bubble.' 'The feeling of a bubble is also reinforced by the extreme performance gap between growth and value investing.' 'While at first glance, one can only stand back awestruck by the wealth creation delivered by technology stocks globally. It does not seem at all like the internet bubble of 1999-2000, says Akash Prakash.
Global rating agency S&P forecast on Tuesday a slowdown in Indian economy to 8.6 per cent this fiscal due to high interest rates and appreciating rupee but expected no change in key rates and cash reserve ratio in RBI's credit policy on October 30. But the strong domestic demand would ensure that India maintains high growth. The moderation from last year's 9.4 per cent to 8.6 per cent this year therefore reflected a soft landing, S&P said in its mid-year review.
The S&P BSE Sensex ended up by 39 points at 24,646.
Omkeshwar Singh, head, Rank MF, a mutual fund investment platform, answers your queries.
Liquidity issues post the crisis at DHFL, progress of monsoon, rupee trajectory at the domestic level and oil prices are some factors that will keep markets choppy, analysts say.
Metal stocks were trading under pressure while IT, auto, realty stocks gained in today's deals
Beat gains made by mid-cap, broader indices.
The S&P BSE Sensex shed over 255 points and ended at 25,062.67 while the CNX Nifty traded 76 points lower and ended at 7,493.20.
Women account for less than 5 per cent of the CEOs in S&P 500 companies.
Investors must adhere to their risk appetite at all times and should do well for themselves over the long-term.
The breadth, indicating the overall health of the market, was slightly positive
The regulator is more carefully scrutinising applications by infrastructure investment vehicles that have a limited number of investors. They have been asked to broaden their investor base before application approval, according to two people familiar with the matter. The Securities and Exchange Board of India is concerned about the structure being used for getting around tax requirements, according to one of the sources.
The official said the finance ministry will impress upon rating agencies the resolve of the government to contain fiscal deficit at 4.1 per cent this year and lower it to 3 per cent by 2016-17.
A favourable monsoon and government support to the rural economy are among the reasons that agrochemical companies, including makers of pesticides and fertilisers, have done well.
The S&P BSE Sensex gained over 100 points and ended at 26147.33 while the CNX Nifty ended 27 points higher at 7,795.75.
Around 75 per cent, or 372 stocks, that are part of the BSE500 are trading at least 10 per cent below their all-time high levels, despite the index hitting a record high 20,515 points on the BSE in intra-day trade on Wednesday, surpassing its previous high of 20,390 touched in March 12. The index, which accounts for 93 per cent of BSE listed companies' market capitalisation, has gained 8 per cent from its recent low of 18,983, touched on April 19. In comparison, the benchmark S&P BSE Sensex gained 6 per cent over the same period, but is still nearly 4.5 per cent away from its all-time high of 52,517 that it hit on February 16.
Nikunj Saraf, Vice President Choice Wealth, will answers your queries.
BSE Smallcap index outperformed the frontline indices to rise 0.6%, while the BSE Midcap was flat
The top three companies in terms of the largest value of physical shares showed over 30 per cent shares are held in physical form. Two of the top three were part of the S&P BSE Sensex and the Nifty50 indices.
In a bull-case scenario it sees the Sensex at 61,000 levels, while it's bear case scenario pegs the Sensex at 41,000 levels by December 2021.
Fitch had last upgraded India's sovereign rating from BB+ to BBB- with a stable outlook on August 1, 2006.
Monday's drop followed an 8.5 per cent slump in Chinese markets.
