Indian equities are breaking through a series of long-held technical support levels as a selloff gathers pace in a market once considered an emerging-market darling.
The benchmark NSE Nifty 50 Index has fallen for seven straight weeks, wiping out nearly $250 billion in market value, and broken through its 200-day moving average on a weekly basis for the first time in six years.
The rout has been driven by a convergence of pressures rather than a single trigger.
India’s reliance on oil imports means rising prices threaten to fan inflation and cloud its growth outlook. A relentless rally in global bond yields is making local shares less attractive, prompting foreign investors to pull out even more money. The lack of meaningful artificial intelligence plays has further diminished the appeal of Indian equities among global money managers.
Here are three charts that highlight the turbulence witnessed by Indian stocks:
On Tuesday, the Nifty 50 Index fell below its 200-day moving average on a weekly basis for the first time since March 2020. The 30-stock BSE Sensex breached the same support level last week.
