Nifty Set To Post Worst July In 17 Years
Nifty has dropped 5.05 percent so far this month, the worst since the 9.35 percent decline in July 2002, Bloomberg data shows.
The NSE Nifty 50 Index is set to post its worst July in 17 years because of concerns over a slowdown in the economy, delayed monsoon and Budget 2019’s proposal of a tax surcharge on super-rich and foreign investors registered as non-corporates or trusts.
The benchmark index has dropped 5.05 percent so far this month, the worst since the 9.35 percent decline in July 2002, according to Bloomberg data. The gauge is also set to post its first loss in the historically strong July in five years, and the second straight month of decline.
This comes as Indians are buying fewer biscuits to cars, reflected in the GDP growth that fell to its lowest in five years in the three months to March. Also, foreign investors pulled out more than Rs 11,300 crore from India’s equity market this month—the most since October last year. The Nifty futures and options series, too, posted its worst loss in nine months in July.
Indian equity indices also unperformed their Asian and global peers. While the Nifty 50 gained 3.4 percent so far this year, the Hang Seng and Shanghai Composite Index rose 9.12 percent and 18.70 percent, respectively. The Dow Jones is up nearly 17 percent during the period.