In Charts: Markets In First Year Of Modi’s Second Term

India’s equity markets swung between record highs and their worst level in more than a decade in the first year of Prime Minister Narendra Modi’s second term.

The period was marked by uncertainty in the domestic and global markets. The Indian economy was slowing down even before the new coronavirus outbreak. Domestic benchmarks remained volatile, peaking early this year as investors piled into select large caps. But the virus sparked the worst selloff since the 2008-09 crisis.

The rupee weakened against the dollar amid Covid-19 uncertainty and the government bond yields fell as the central bank took measures to cushion the economic stress of the pandemic.

Here are a few charts to sum up the performance of Indian markets in the first year of Modi’s second term:

Foreign investors have been net sellers in both equity and debt segments, largely because of the selloff after the virus outbreak.

Rupee depreciated 7.6 percent against the dollar, making it the worst performer among Asian peers in the first year Modi’s second term as prime minister.

Yields on government bonds have fallen to 5.72 percent from 7 percent a year ago because of the Reserve Bank of India’s interventions to cushion the impact of Covid-19 pandemic. India’s Monetary Policy Committee has lowered the headline repo rate to its record low of 4 percent, while the central bank announced steps to boost liquidity in the system.

Crude oil fell in the past year--and sharply since the Covid-19 outbreak. But that has not made auto fuels cheaper for Indian consumers as the government increased takes to shore up revenue.

After peaking in January, India petrol prices have settled near the level they were at the same time last year. Diesel, after a brief correction, is at the year’s high.