Indian equities market performance vis-à-vis global markets post corona-virus rebound

[lauren_]

Comparison of equities market performance post corona virus rebound in markets since March 23. The author divided this into 3 phases.

Phase 1 - the ferocious bounce which began on March-23 and lasted till April 30

India
31%

U.S.
30%

UK
29%

Germany
26%

Japan
24%

Australia
37%

Brazil
19%

Phase 2 - pullback which started from May 1 and lasted till May 14

India
-8%

U.S.
-2%

UK
-6%

Germany
-6%

Japan
-2%

Australia
-5%

Brazil
-9%

Phase 3 - renewed move higher across global markets till present day

India
-1%

U.S.
3%

UK
4%

Germany
7%

Japan
1%

Australia
4%

Brazil
11%

Key takeaways:

1. Phase 1 - Rebound in India was in line with the global equities market
2. Phase 2 - India lost much more than the other global markets
3. Phase 3 - India is the only market in the sample set that is down. The major events in this phase were the announcement of the fiscal stimulus that failed to cheer the market, as well as lockdown 4.0 along with infections still increasing.

Source:

https://www.cnbctv18.com/market/in-...orld-markets-and-in-the-wrong-way-6011611.htm

 

[tonedr]

@lauren_ Interesting but this is just short term volatility. What perspective can you really gain from analysing such blips as an investor?

 

[julia736]

@tonedr +1

This period is not long enough to draw meaningful conclusions.

 

[resjudicata]

@lauren_ India doesn’t have the technological giants like US does. The tech sector is the driving force behind S&P’s resurgence now.

 

[badue]

@resjudicata Can’t wait for the last decade’s SaaS and logistics companies to IPO. Retail investors will finally have some good stuff to invest in instead of the same old ITC, Reliance.

 

[michellelovesjay]

@badue I don’t know. Can lead to another dotcom bubble in making. While ITC is evergreen for its usual returns.

 

[resjudicata]

@lauren_ As whole country being in lock-down for 2 months, this was bound to happen. This will bounce back once we go business as usual.

 

[lee1009]

@lauren_ ASX is technically out of bear market as of yesterday.

 

[abdallah20]

@lauren_ Those returns you have listed here account for current devaluation? For example, if I invested $10K in best performing ETF on n100 and an equivalent INR in best performing ETF in India, the amount after 12 months would be different even if both markets generated same return. Rupee loses to dollar every year and keeps getting worse.

 

[aksumite]

@lauren_ How much did the markets fall before Mar 23rd/pre-Phase 1? Isn't that equally important.