Oct 23 2018

What’s up (or down) with the Global Equities??

Indian equities are facing some serious selling pressure. After posting superlative gains in the first half of 2018, NSE/BSE is suddenly looking extremely vulnerable. NSE/BSE has declined a whopping 5% in the last four trading sessions.

An obvious doubt that comes to one’s mind is “has the Indian equities weakened in isolation?” Let’s have a look.

Check out the rebasing chart below. The chart analyses the performance of major global equity indices since the beginning of June 2018.

 

US equities have been the star performers (Trump is a rock star). The Dow (light blue line) has posted gains of almost 3%, while the S&P500 (dark blue line) inched about 1% higher.

Asian equities are on the other side of the spectrum – Hang Seng (green line) has plummeted by a massive 17% while the Shanghai Composite (purple line) has plunged by 16%. 

European indices have fared comparatively better than their Asian counterparts. Germany’s DAX (grey line) declined 11%, the French CAC40 (red line) has lost 9% in value while Britain’s FTSE (yellow line) deteriorated by a similar 9%.

In this widespread equity sell-off, India’s NSE (orange dotted line) has weakened by 5%.

Weak or Resilient?