Down 5.3 per cent in February, India’s bourses still better than peers

The global equity sell-off triggered by a long-expected market correction in the United States this month has had its effect on India’s stock markets.

Published: 10th February 2018 04:37 AM  |   Last Updated: 10th February 2018 04:37 AM   |  A+A-

sensex, stock exchange, bombay, BSE, Nifty,

Representational image. (File | reuters)

Express News Service

NEW DELHI: The global equity sell-off triggered by a long-expected market correction in the United States this month has had its effect on India’s stock markets. Combined with internal factors like a less-market friendly budget and rising inflation, Indian stock markets have fallen in tandem with its peers since February 1, with the benchmark Sensex index down 5.3 per cent — from 35,906.66 points at the start of the month to 34,005.76 points on February 9. But, despite the sharp dip in the indices, India has still fared much better than most of its Asian peers.

Compare Sensex’s fall during the period with China’s SSE Composite Index. The latter has fallen at nearly twice the rate, losing 9.2 per cent. Japan’s benchmark Nikkei, meanwhile, has fallen 8.95 per cent. As have South Korea’s KOSPI (7.97 per cent), Hong Kong’s Hang Sang (9.6 per cent) and Taiwan’s Taiex (7.06 per cent), all of which have fared much worse than India’s Nifty and Sensex.

Analysts and brokerages point out that a lot of the impact has been mitigated by the rather large quantum of domestic investors who have been the drivers of the recent upswing in India’s stock markets. And, while the global panic is also being driven by the feeling that stock values are currently significantly overvalued compared to earnings, India’s corporate earnings are starting to show firm signs of recovery after months of turmoil.

Vinod Nair, head of research, Geojit Financial Services, pointed out that while indices lost 2.8 per cent this week, “some buying interest was witnessed in the mid & small cap stocks post recent sharp correction”. “The current earnings season is providing strong signs of revival in corporate earnings underlining the long term growth prospects, which is providing relief for investors,” Nair noted.  But, he cautioned that prevailing inflationary pressure and fiscal slippage may turn RBI to a more hawkish stance in the near future, with higher interest rates impacting near term profitability of domestic companies.

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp