Returns from Indian stock markets may be negative for the first time in 7 years

Heavy selling by foreign institutional investors, global developments, rising inflation and interest rates, etc., are also affecting the Indian stock market. Like other countries of the world, there is an atmosphere of uncertainty in the Indian market. Meanwhile, the results of a poll have brought another bad news for the Indian stock markets. From a recent poll conducted by Reuters, it has come out that for the first time in 7 years in the Indian equity market, this year may see negative annual returns.

According to the poll results, there is little hope of the market recovering rapidly from this year’s steep fall due to rising interest rates and the prospect of declining global growth. Rising inflation in the whole world including India, Ukraine crisis, problems in supply chain etc. are such reasons, which have spoiled the economy and market  in all parts of the world. To control inflation, central banks are increasing interest rates, due to which the risk of recession has arisen. Because of this, investors are exiting from risky investments at this time.

Talking about India’s benchmark BSE Sensex, it has lost 7 percent so far this year. At the same time, from the high of 61475.15 points on January 18 this year, the Sensex has lost about 12 percent so far. In the current situation, there is no hope that the Sensex will be able to touch its January high once again. However, the performance of the Indian benchmark index still looks comparatively better.

MSCI down 16%

World index like MSCI has fell more than 16 percent so far this year. Not only this, at the beginning of this month, this index had come very close to the bear market zone. When an index breaks down by 20 percent, then it is considered that it has entered the bear market.