Home›Global Markets›India›Nifty 50’s seven-week slide prompts hopes for a relief…

Nifty 50’s seven-week slide prompts hopes for a relief rally

The Nifty 50 is down 5.8% over seven weeks, versus much deeper drops of up to 33% in past similar stretches.

Reported · Written up by our desk · India

LiveMint Markets said sentiment around India’s Nifty 50 has been pressured by elevated oil prices, higher global bond yields, foreign portfolio investor outflows, and expectations for additional Fed tightening.

The outlet noted that the benchmark has been falling for seven straight weeks, and history has sometimes pointed to a rebound, with past seven-week losing streaks followed by Nifty gains over the next six weeks, based on data cited from Samco Securities.

However, LiveMint Markets said the current sell-off is much milder than earlier episodes, with the index down 5.82% over the past seven weeks compared with declines of 18%, 20%, 22%, and 33% during comparable periods in March 2001, September 2001, 2008, and 2020.

While that could still set up an eighth week as a turning point, the outlet said the smaller drawdown reduces the evidence for a sustained recovery compared with prior cycles.

More like this

Sources