If you invest your hard-earned money in the stock market with the hope that it will give you great profits in the long run, then the current situation may disappoint you. The Indian stock market is going through a very challenging phase these days, the situation is so serious that about 65 percent of the shares in the BSE 1000 index have not given any profit to the investors in the last 3 years. At the same time, almost half of the shares have lost their entire gains of the last five years.
From largecap to smallcap… redness everywhere
If we go deeper into the figures, the picture looks even more scary. On the basis of 3 years, 258 shares of BSE 1000 have incurred losses ranging from one to ten percent. There are 168 shares which have fallen by 10 to 20 percent, while 119 shares have fallen by 20 to 50 percent. During the same period, there were 119 stocks which gave absolutely zero (flat) returns. Even in the five-year data, 205 shares have registered a loss of 1-10%, 95 shares have registered a loss of 10-20% and 57 shares have registered a loss of 20-50%.
The situation of Nifty-100 which includes big companies is more or less the same, where half of the shares are running in loss on the basis of 3 years. Of these, 34 shares declined by 1 to 20 percent and 17 shares remained flat. If we talk about five years, about 30 percent of Nifty-100 stocks have not given any return. Small and medium stocks have been hit the most in the market. 65 percent of the shares of BSE Smallcap 250 index have turned negative in three years and 50 percent of the shares have become negative in five years. At the same time, half of the shares of BSE Midcap 150 are disappointing investors on both three and five year scales.
The market is falling apart like a pack of cards
Many global reasons are responsible for this huge fall in the market, the biggest of which is the rise in crude oil prices. After the recent attacks on energy plants and infrastructure in the Middle East, Brent crude has crossed $ 110 per barrel with a huge jump of 55 percent. When crude oil is expensive, the cost of everything from transportation to production increases in the country. This has a direct impact on the profits of companies and creates a danger of uncontrolled inflation.
Foreign investors also disillusioned
This fear of inflation is giving sleepless nights to central banks around the world. The Bank of England and the Bank of Japan may have kept their interest rates stable for now, but they have expressed deep concern about the future. The market now fears that the European Central Bank and the Bank of England may soon increase interest rates. By maintaining the current rates, the US Federal Reserve has also made it clear that the risk of inflation has not gone away yet.
In this environment of uncertainty, foreign investors are increasingly moving away from the Indian market. This month alone, foreign institutional investors have withdrawn a huge amount of $ 7.8 billion from the stock market and about $ 939 million from the bond market. Leading global brokerage firms like Morgan Stanley have downgraded India’s rating, while Citigroup has issued a risk warning regarding its earnings for fiscal year 2027. This maze of global tension and inflation has currently put a severe brake on the momentum of the stock market.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsh advises its readers and viewers to consult their financial advisors before taking any money related decisions.