Is India the worst performing stock market at the moment?

Look at how some of the biggest Stock Markets have performed around the world in the last one month

DJIA – New York, +4%

NASDAQ – New York, +7.9%

Nikkei – Tokyo, +2.4%

Shanghai Composite – Shangahi, +0.8%

Hangseng – Hongkong, negative 1.6%

FTSE – London, +4.1%

DAX – Frankfurt, +3.6%

BOVESPA – Sao Paulo, +2.8%

CAC – Paris, negative 0.7%

SENSEX – Mumbai, negative 5.1%

So if one looks at some of the most well known markets in the world, India is THE WORST PERFORMING BIG MARKET IN THE WORLD. There are 3 main reasons for this

  1. While rest of the world, active cases have been trending downwards, India has been increasing everyday
  2. India’s lockdown has been very aggressive compared to rest of the world. For example, Brazil’s manufacturing Index fell from 48 in March to 36 in April, India’s on the other hand fell from 51.8 to 27.4
  3. Recent announcements by the Finance Ministry have been below expectations leading to significant losses in the last one week. FIIs for example have net sold Rs 8800 crores of Positions over the last one week, Domestic investors on the other hand have purchased Rs 1800 crores worth of stocks in the last one week.

Overall, India is in a tight place on the economy front. With some restrictions on business removed this week, the markets will watch out for indicators of economic performance. Any improvement will see India quickly going up the rankings.