India’s stock market, which has been its worst performer globally over the past five months, may yet have legs, according to fund managers and derivatives positioning data.
The Nifty 50, a key benchmark index, has seen significant losses, wiping out around $1 trillion in investor wealth. Despite this, some experts believe that the market remains attractive for long-term investors.
A recent survey of fund managers suggests that India is still considered a “sell-on-rise” market, indicating that investors are hesitant to buy despite low valuations. However, others point to signs of resilience in financials and suggest that IT stocks may have bottomed out in February.
Derivatives positioning data also indicate further risk ahead, suggesting that investors are taking on more exposure to the market. This could be a sign that investors believe the market will bounce back.
However, despite these warning signs, some experts remain optimistic about India’s economic prospects and the potential for a rebound in the stock market. As one fund manager noted, “India remains an attractive destination for long-term investors.”
Overall, while the Indian stock market has had its worst run in 29 years, there are still signs of resilience and potentially even a rebound on the horizon.
Source: https://www.reuters.com/world/india/indian-stocks-worst-run-29-years-wiping-1-trillion-wealth-may-yet-have-legs-2025-02-28