The first 100 days of the Modi government 2.0 appear lacklustre on the parameters of economic growth and the performance of the equity market.
While the country's GDP growth fell to over 6-year low of 5 percent in the June quarter, equity benchmarks Nifty and Sensex have plunged 7.10 percent and 5.81 percent, respectively, since May 24.
Data shows that investors lost nearly Rs 12 lakh crore in the BSE-listed firms and as many as 22 stocks among the BSE500 pack plunged over 50 percent, from May 24 till date.
Stocks such as HSIL, Coffee Day Enterprises, Jet Airways, Reliance Capital and Indiabulls Integrated Services have lost over 70 percent of their market value during the said period.
A gamut of domestic as well as global factors was at play to bring the market down during the period.
The US-China trade war, the chaos around Brexit and geopolitical tension were the top global headwinds. At the domestic front, the budget proposal of tax surcharge on super-rich, a slump in auto sales and the liquidity crunch in the financial market triggered a fresh wave of outflow of foreign fund from the equity market.
The poor health of banks and NBFCs, disappointing quarterly earnings of the India Inc and an almost stagnant agri sector made the situation worse.
Foreign portfolio investors (FPIs) took off nearly 29,000 crore from the Indian equity market during July and August 2019.
The selling was widespread. Data from Ace Equity shows barring the IT sector, which rose about 7 percent, all sectoral indices experienced the heat of selloff following the return of the NDA government.
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