Swinging in between highs and lows, the headline equity index Nifty is now back to where it was at the end of the calendar year 2021. As Nifty slipped below its 50-DMA or daily moving average and ended at 17,327.35 points on Friday, it is now 26.65 points below the 31st December closing of 17,354.
Sensex, which ended near the 58,100 mark, has also eroded all gains earned this year as the US Fed is seen maintaining its aggressive stance at its next policy review.
The only index that ended in the green during the day was the fear gauge index India VIX which shot up over 9%. PSU banks, realty, financial services and media stocks were among the worst hit during the selloff.
After hitting an all-time peak of 18,604.45 on October 19 last year, Nifty hit a 52-week low of 15,183.40 earlier on June 17.
When seen on a year-to-date (YTD) basis, the Indian market has proved to be much more resilient than other global markets or even Asian/emerging peers. The S&P 500 has lost over 21% so far in 2022.
“With aggressive monetary policy action by central banks, the global growth engines are in a slowdown mode, whereas India is currently in a better position with a pickup in credit growth and an uptick in tax collection. The current volatility might persist for a while. Investors are advised to wait and watch until the dust settles,” said Vinod Nair, Head of Research at
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)