The inventory market didn’t see such a decline after 1996, this document goes to interrupt 28 years outdated – INA NEWS

Inventory Markets: The Sensex and Nifty are presently going by means of a really poor section. In February, each Sensex and Nifty have fallen by about 4%. With this, the Nifty is now seen closing with a decline for the fifth consecutive month. If this occurs, it will likely be the longest decline after the final 28 years, ie after 1996. This decline has not solely shaken the Indian inventory market, however has additionally elevated the considerations of traders.

The decline in Sensex and Nifty has continued since September 2024. Each index touched their all -time excessive on 26 September 2024. Since then, now the Sensex has fallen by 12.98 p.c and the Nifty has been down by about 13.8 p.c. With this, each indexes have now touched their 8 -month low of 8 months. If an identical decline continues, the Nifty index will shut with a decline for the fifth consecutive month.

The final time within the inventory market was 28 years in the past in 1996. At the moment, from July to November 1996, the Nifty closed down for five consecutive months. Since then, the financial recession of 2008 got here, the Korona epidemic got here, however there was by no means such an extended decline within the inventory market. Nonetheless, the longest fall within the inventory market was set in 1994-95, when the Nifty closed for 8 consecutive months.

This decline of the inventory market has put India within the record of the world’s worst performing inventory market. Within the US greenback time period, the Nifty has fallen by 6 p.c in 2025 this yr i.e. 2025. With this, the Nifty has now change into the third most declining market in all rising markets. The decline has come solely within the inventory market of Thailand and the Philippines. Thailand’s inventory market has declined by about 10%. The PSEI index of the Philippines has fallen by 6.7% throughout the identical interval.

Speaking about essentially the most performing markets, Hong Kong’s Hong Seng and South Korea’s Kospi have carried out one of the best this yr. Hong Kong’s Hold Seng index has climbed 16.4% to this point this yr. Whereas the Korea’s Kospi index is on the prime with a acquire of 14%.

Market specialists say the Indian inventory market is continually promoting because of weak quarterly outcomes, international traders’ promoting, Trump’s tariff coverage and excessive rates of interest.

Based on Bloomberg knowledge, the Indian inventory market nonetheless stays costly than the remainder of the Asian markets. Shanghai Composite is presently buying and selling at 12.3 occasions ahead earnings. Korea’s Kospi index is on 9.3 occasions ahead earnings. Whereas the Nifty 50 remains to be buying and selling 18.7 occasions ahead incomes.

Kotak Institutional Equities not too long ago stated in a report that they’re cautious concerning the Indian market and the transfer of Sensex and Nifty can stay directed even additional. They consider that the market remains to be on excessive valuation and there aren’t a lot alternatives for purchasing at low costs. Brokerage stated that the affect of the recession on small and midcap shares is predicted to proceed even additional.

Nonetheless, Citigroup, in the meantime, has launched a optimistic report relating to the Indian inventory market. Brokerage has additionally elevated the score of Indian shares from impartial to obese. Brokerage stated that regardless of all of the uncertainties on the world degree, the efficiency of the Indian inventory market is predicted to be higher than the remainder of the Rising Markets.

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