India's Bull Market Indicator Plunges As Risk Off Sentiments Weigh Stocks
The bullish sentiments that powered Indian benchmarks took a beating last week as geopolitical tensions, coupled with China's recovery, weighed investors.
India's bull-bear index—a market sentiment indicator—fell to the neutral zone from the extreme bullish zone a week ago, CLSA said in a note. The index reading was 54% bullish on Friday, down from 97% bullish a week ago.
The benchmark NSE Nifty 50 was down 4.5% during the week and underperformed regional peers. The equity indices recorded their worst weekly loss in over two years amid rising tensions in West Asia last week. All sectors except metals were in the red, with auto and realty being the worst performers.
Monetary stimulus unleashed by China has sparked a wave of tactical FII outflows from India.
China's CSI 300 is up 22% from its September lows to enter a technical bull market, according to Bloomberg. This led China to regain the influence it lost for over 10 months in the MSCI Emerging Market index.
Further, markets were also weighed by securities market regulator's measures introduced under its futures and options framework to strengthen the equity index derivatives market.
This was coupled with fears of a slowing economy as the tax collection saw a decline. Gross Goods and Services Tax collection growth in September reached a 40-month low of 6.5%. The eight core sectors' output growth declined in the latest reading.
Motilal Oswal Financial Services Ltd. said that India's medium-term growth narrative stands out in an extremely volatile global landscape. "Waters may get a bit turbulent for Indian equities in the short term."
Outcomes of the recent state elections, while not a needle mover, may keep the markets on edge, the brokerage said.
The NSE Nifty 50 and BSE Sensex rebounded from five-day decline at open on Monday, as Infosys Ltd., and Reliance Industries Ltd. led gains.
As of 09:59 a.m., Nifty was trading 53.3 points or 0.21% higher at 25,067.90, and Sensex was trading 275.11 points, or 0.34% higher at 81,963.56.
-
Talking Points This Week: Leadership Shock At Nvidia, Earnings Strength, And The Fog Over Hormuz
The Anthropic IPO pricing and first trading day, Nvidia's upcoming earnings, and any fresh signals from Iran will set the tone for the following week.
-
Signature Play: The Classic Cocktail Is Dead. Or Is It?
Classic cocktails are disappearing from India's cocktail menus. But they're still being ordered, taught to bartenders and borrowed from. So, who's really having the last drink?
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
