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Global Markets Outpace India as Nifty, Sensex Decline
India’s main stock-market indexes have performed poorly over the past two years.
The Nifty 50 and Sensex both lost value during that period.
Other indexes, including those in South Korea, Japan, and the United States, rose substantially.
Pakistan’s main stock index also increased sharply.
Experts said the falling Indian rupee reduced returns for foreign investors.
They also said investors preferred countries seen as creators in the artificial-intelligence industry.
Pakistan’s stock-market rise was linked to economic stabilization and an IMF loan program.
Lower interest rates then helped Pakistani banks and supported demand in the economy.
The Nifty 50 opened at 23,064 and fell to 22,807, extending losses after seven straight weekly declines.
Over two years, the Nifty 50 fell 12.88% and the Sensex declined 13.83%, while Bank Nifty gained 2.89%.
The KOSPI, Nikkei 225, Nasdaq, and S&P 500 gained about 160%, 68.30%, 106%, and 35%, respectively, over two years.
Pakistan’s KSE 100 rose from about 81,000 to 170,000, delivering an approximately 110% return over two years.
Experts attributed India’s underperformance to rupee weakness, foreign outflows, limited exposure to the artificial-intelligence boom, and Pakistan’s economic stabilization.
- Who
- India’s Nifty 50 and Sensex investors, global market investors, and analysts including Sandeep Pandey, Amit Goel, and Avinash Gorakshkar.
- What
- Indian benchmark indexes underperformed several global indexes over two years, while Pakistan’s KSE 100 surged.
- Where
- India, Pakistan, South Korea, Japan, Taiwan, and the United States stock markets.
- When
- The comparison covers the two years preceding the reported Monday market opening; the article also gives one-year comparisons.
- Why
- Experts cited Indian rupee weakness, foreign-investor outflows, limited participation in the artificial-intelligence boom, and Pakistan’s economic stabilization.
Key facts
- Nifty 50 two-year change
- Down from 26,179 to 22,807, a decline of 12.88%.
- Sensex two-year change
- Down from 85,571 to 73,734, a decline of 13.83%.
- Bank Nifty two-year change
- Up 2.89%, from 53,834 to 55,390.
- KOSPI two-year change
- Rose from about 2,650 to 6,890, or approximately 160%.
- Nasdaq two-year change
- Rose from 18,120 to 27,068, or 106%.
- Pakistan KSE 100 two-year change
- Rose from about 81,000 to 170,000, or approximately 110%.
- One-year comparison
- The Nifty 50 and Sensex fell more than 7%, while the KSE 100 rose more than 5%.
Quotes
Sandeep Pandey
Co-founder of Basav Capital who discussed currency weakness and foreign outflows.
“The free fall in the Indian Rupee hit the risk-reward ratio of foreign investors negatively. In such a scenario, the AI boom came as a shocker for the Indian stock market, as in the AI theme, the Indian market was seen as a user, while the South Korean or the Taiwanese stock market was seen as a creator.”
livemint.com
“The initial reason for the Nifty 50 and Sensex failing to match their global peers can be attributed to the weakness in the Indian National Rupee (INR) against the US Dollar (USD).”
livemint.com
Avinash Gorakshkar
Founder of Avinash Mentor Research who attributed Pakistan’s market rally to stabilization and IMF support.
“The key reason for the rally in the KSE 100 can be attributed to the economic stabilisation. In the last two years, Islamabad has secured around $7 billion in an IMF loan, which has anchored Pakistan's economic progress.”
livemint.com
Sources
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