6 Charts Showing the State of Indian Financial Markets in 2020 - Views on News from Equitymaster

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  • May 26, 2020 - 6 Charts Showing the State of Indian Financial Markets in 2020

6 Charts Showing the State of Indian Financial Markets in 2020

May 26, 2020

Stock markets around the world have witnessed one of the most volatile phases in 2020 so far.

Indian stock markets too mirrored the trend.

Here are six charts showing how Indian financial markets have performed in 2020 up until now.

  1. Sensex Witnesses Free Fall

    The BSE Sensex started 2020 on a positive note and traded almost flat until the end of February.

    It then witnessed one of the greatest fall seen in a month during March.

    March 2020 was a washout month for the Indian stock markets due to the Covid-19 impact. The Sensex fell 23%.

    Then there was what we could call a relief rally in April. The Sensex was up 14%.

    May is turning out to be similar although not as brutal as March. The BSE Sensex is down by around 10% for the month so far.

    On a year-to-date (YTD) basis, the Sensex is down 26%.

    Remember these 23%, 14%, 10% are monthly numbers for the Sensex. These are the kind of changes that we are used to seeing in a year or more.

    All these numbers suggest one thing clearly: there is a lot of uncertainty and there may be volatility in the coming days.

    Sensex Crashes 26% in 2020

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  3. Huge Selling Pressure for Most Sensex Stocks

    Except four, all the stocks in the BSE Sensex show a negative return in 2020 on a YTD basis.

    The decline is mainly led by banking stocks and financial stocks.

    Stocks such as IndusInd Bank, Bajaj Finance, and Axis Bank have fallen as much as 60% - 80% YTD.

    Bharti Airtel, Nestle, Sun Pharma, and HUL are the only Sensex gainers on a YTD basis.

    Top YTD Gainers and Losers in 2020

  4. Sectorial Indices in a Sea of Red

    Among sectors, most of the BSE indices have seen a sharp fall in 2020.

    BSE Bankex, BSE Realty, and BSE Finance fell more than 45% YTD.

    It was a double whammy for banking and finance stocks that witnessed most of the brunt on the back of coronavirus outbreak and Yes bank crisis.

    The only YTD sectoral gainers are BSE Healthcare and BSE Telecom which rose 15% and 18%, respectively.

    Worst Hit Sectors in 2020

  5. Crude Oil Slumps Over 40% in 2020

    Crude oil fell sharply in 2020.

    It witnessed selling during the start of the year due to oversupply concerns amid subdued demand.

    Prices crashed further in March in what was the worst price dip since the 1991 Gulf War with Brent prices plunging to US$ 31 per barrel.

    In April, crude oil futures crashed and briefly went to negative prices, implying that investors would need to pay buyers to take delivery of crude oil amid dwindling storage space.

    Crude oil prices across the globe are in downtrend on higher supply pressure on swelling inventories while crude oil demand is at multiyear lows due to stalled world economy.

    On a YTD basis, crude oil is down 42%.

    Crude Oil Prices Fall Sharply

  6. URGENT OPPORTUNITY: Top 5 Stocks That Could Potentially Give the First 50-100% Gains Very Fast

  7. Gold Prices Shine

    Base metals have also remained under pressure in 2020 as lockdown imposed in several parts of the world curbed demand, pushing stockpiles higher.

    However, gold witnessed buying interest in 2020 as demand for the safe haven asset rose with market participants bracing prolonged uncertainty in the wake of the novel coronavirus outbreak.

    In May, gold prices hit a new high of Rs 47,980 tracking rally in global rates amid increasing US-China tensions and expectations of further stimulus from central banks. With this, gold has rallied to its highest since October 2012, driven by economic damage concerns, US-China tensions, and massive monetary and fiscal stimulus.

    On a YTD basis, the most recent contract for gold on MCX is up around 20%.

    Gold Continues Rally in 2020

    Speaking of gold, in his latest video, Apurva Sheth, lead chartist at Equitymaster, compares gold and bitcoin. He explains, which is the better asset in this difficult economic situation.

    Tune in to his video here...

  8. Rupee Hits Record Low

    Massive sell-off in equities and bonds led to a huge fall in rupee against the dollar in 2020.

    The rupee hit a record low of 76.92 against dollar in April.

    Most of the selling pressure for rupee was seen on the back of slump in equities and currencies globally. Investors were concerned that support measures from governments and central banks may be insufficient to halt the economic damage caused by the coronavirus pandemic.

    Rupee Continues Downtrend

So, that was a round-up on how Indian financial markets have performed in 2020 so far.

At times like these, while we must do everything we can to guard against the coronavirus, we must not ignore our money.

Our special report, How to Trade the Coronavirus Crash, will help you get a grip on the current market situation...and figure out ways to profit from it. I strongly recommend you read it now. Claim your FREE copy here...

Also, speaking of Indian financial markets, in the recent episode of Investor Hour, Rahul Goel talks to Vijay Bhambwani, who he calls India's #1 trader.

Vijay believes there's money to be made in this market...across asset classes.

He talks about stocks, bonds, the rupee, gold, silver, crude oil, and pretty much everything of interest to both traders and investors.

Tune in to find out more...

Happy Investing!

Monish Vora

Monish Vora is a keen student of the markets and shares his observations through his clear and concise commentary.

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