Indian market has fallen 2.5 per cent in dollar terms so far this month, the most among major global markets.
Last month, India was the worst-performing market with a near 5 per cent
drop. Since February, the domestic market has come off 7.4 per cent, a below-par performance of 170 basis point compared to Eurozone, the second-worst performing region.
However, due to a 4.5 per cent rally in the benchmark S&P BSE Sensex in January, the year-to-date fall is a modest 2.9 per cent.
The fall in the Indian market was triggered by a global risk-off amid rising US bond yields. When most global markets
were in the rebound phase, India missed out due to the $2-billion banking fraud.
are major underperformers since February
Banking shares, which account for a third of India’s market capitalisation, have been the biggest drag on the performance of the benchmark indices.
Global markets have once again turned jittery on fears of a trade war after the US raised tariffs on steel and aluminium.
Experts say, Indian markets will remain range-bound with a negative bias in the near term.