The value of Indian shares has fallen by around 11 percent this year to 247.76 lakh crore rupees. In the meanwhile, around 300 shares fell 50 percent from the all-time highs. As per valuation, this is the biggest downfall among the top-10 share-markets of the world. Opposite to this, the market-cap of other big markets of the world has gone up by 9 percent.
During the past two weeks, Sensex and Nifty have lost more than 5.5 percent. In February as well, these benchmark indices had declined by over 6 percent. So far in 2023, Sensex has gone down by 5.4 percent, and Nifty by 6.3 percent. This year, so far, foreign investors have sold shares worth about 22, 200 crore rupees in the Indian market. In 2022, they had sold shares worth rupees 1.40 lakh crores.
On Friday, Sensex went up by 355 points and closed at 57, 990. Nifty too, jumped 114 points and remained at 17, 100. The sentiment became stronger due to the appreciation of the Indian rupee and the fall in crude oil prices. Till now this year, 75 percent downfall has been recorded from the all-time high in 92 shares. 66 shares have lost more than 80 percent. The shares of all sectors have fallen, with the power sector being an exception.
- Ranganathan, Research Head, LKP Securities, said that currently, there is no hope of a positive sign. The monsoon season will begin from 15th June, and if the weather is not affected by al-Nino, and normal rainfall is seen, the share-market trend can turn around.
Till a few months back, Indian shares were a lot costlier in comparison to other markets, and as a result, foreign investors earned profits by selling the shares. In other markets like that of China, it is difficult for foreign investors to sell the shares on a large scale and take money back. This is not the case in India.
Currently, foreign promoters are also selling their shares in Indian companies. For instance, the Japanese promoters of Motherson Sumi sold their shares after 40 years recently.
