Indian stock markets have been experiencing a downturn since September, driven by a cooling economy and a significant exodus of foreign investment. Sectors like real estate, energy, and autos have been hit hardest. While some analysts view this as a healthy correction, others are more cautious about the near-term outlook.
Domestic sectors such as real estate, energy and autos have been the biggest decliners, data from Goldman Sachs showed.
"We think that will portend an underperformance in local equities relative to other major benchmarks," wrote Harry Chambers, assistant economist at Capital Economics. Foreigners remain net sellers of Indian equities, said James Thom, senior investment director at Abrdn. There has been a rotation out of India and emerging markets stocks into U.S. equities, Thom added."It's a sort of risk-adjusted view that can get a better, safer return in U.S. equities," Thom said."So why take the risk, so-called perceived risk with India?"
Profit booking involves selling a portion of an investment to secure gains after the asset has risen, rather than holding it indefinitely. Traders sometimes engage in profit booking when The quadrupling of domestic equity investors in India between 2020 and 2024 has led to a mini-bubble, which has been deflating since September, said Praveen Jagwani, CEO of asset management company UTI International.
INDIAN MARKET ECONOMY FOREIGN INVESTMENT STOCK MARKET CORRECTION
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Indian Rupee Recovers Amidst Oil Price Decline and RBI InterventionThe Indian Rupee (INR) shows signs of recovery on Friday, fueled by a drop in crude oil prices and the Reserve Bank of India's (RBI) more flexible approach to currency management. Although US Dollar demand from banks and uncertainty surrounding US tariffs weigh on the INR, the positive economic outlook and upcoming PMI data offer hope for further gains.
Read more »
Biden Leaves Office Amidst Questions About Cognitive DeclineCBS News reporter Jan Crawford criticizes media for not thoroughly covering President Biden's cognitive decline, arguing it could have changed the election.
Read more »
Border Crossings Decline Amidst Uncertainty Over Future PolicyWhile the number of migrants crossing the US-Mexico border illegally saw a significant decrease following President Biden's executive action, volunteers in southern Arizona remain vigilant, providing aid to those in need. The ongoing debate surrounding border security and immigration policy continues to raise questions about the future of crossings and the support needed for those attempting to reach the US.
Read more »
Makeup Sales Decline Amidst Prestige Market GrowthWhile prestige makeup sales show slight growth through Q3 2024, overall makeup sales are declining. Data reveals a 1% drop from January to October 2024, with the downturn accelerating in the last 12 weeks. This marks the only beauty category experiencing an overall sales decline. Lip cosmetics are the bright spot, with growth driven by glosses, stains, liners, and balms.
Read more »
Denver Issues 25,000 Residential Rental Licenses Amidst Restaurant License DeclineThe City of Denver has officially issued 25,000 residential rental licenses, a significant increase from previous years. This requirement, implemented to ensure minimum safe living standards, mandates third-party inspections for all rental properties. While the number of rental licenses surges, restaurant licenses have dropped by 22%, possibly due to pandemic-related challenges.
Read more »
XRP Funding Rates Decline Amidst Market Correction, Traders Remain CautiousXRP funding rates have plunged, signaling a cautious atmosphere among investors as the crypto market faces a correction. Spot traders are actively absorbing selling pressure, leading to net outflows on major exchanges. The token's recent double-top pattern suggests a potential decline towards the $2.17 support level.
Read more »