ID :
12428
Mon, 07/14/2008 - 11:28
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https://oananews.org//node/12428
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Indian stocks worst BRIC performers in 2008
New Delhi, July 14 (PTI) With the bears strengthening their hold on the domestic stock market, Indian equities have given the worst returns to investors compared to their peers in the three other BRIC nations — Brazil, Russia and China —so far this year.
According to an analysis of MSCI Barra indices, a measure of returns from various stock markets across the world for foreign investors, Indian stocks have given the highestnegative return among the four BRIC countries till July 11.
Indian stocks have provided a negative return of over 41 percent so far this year, while China and Russian markets havegiven losses of 25.55 percent and 10.15 percent, each.
At the same time, investors have actually gained in Brazil, although marginally, with stocks there rising 0.13 percent since the beginning of this year, according to ananalysis of performances of MSCI Indices for various nations.
"India was among the best performing markets last year, but the correction suffered by the domestic market this year has been very severe which has sent it into a downward frenzy," Arun Kejriwal Director of Kejriwal Research andInvestment Services (KRIS) told PTI.
Another reason why Indian markets have performed badly is that all the macro economic indicators which were driving the bulls last year such as strong GDP growth, strengthening of the Indian currency and inflation at controlled levels, haveall back-fired this year, Kejriwal added.
Also, for the second month in a row this fiscal the industry performed poorly with industrial growth, as reflected by the Index of Industrial Production (IIP), dipping to 5percent in April-May against 10.9 percent a year-ago.
Besides, the soaring inflation has been hogging the limelight since the past few months and the rise in the prices index to double-digit figures has led the Government to takestrict measures to curb the surge.
Inflation rose to 11.89 percent for the week ended June28, against 4.42 percent in the same week a year-ago.
Brazil is one of the few emerging nations which have actually managed to provide gains of 0.13 percent in theperiod of little more than six months so far this year.
"Brazil has performed relatively better as its ethanol and sugar reserves provide it an insulation from the rising global crude oil prices leading the stock market to givecomparatively better returns," Kejriwal said.
Besides, MSCI Barra's emerging market index, which includes all the developing world markets, has also given negative returns to foreign investors to the tune of 16percent so far this year.
In the past three months also, Indian stocks have performed badly in comparison to other BRIC markets with a negative return of 28 percent. In comparison, stocks in China have dropped 15.43 percent, while those in Brazil and Russia have slipped 7.52 percent and one percent respectively, theMSCI indices data revealed.
In July so far, Chinese stocks have been able to provide investors with positive return of over 2 percent and Indianequities have given marginal negative returns of 0.06 percent.
However, Brazil underperformed with negative returns of over 9percent and 7.50 percent by Russia in July so far.
MSCI Barra is a leading provider of investment decision support tools to investment institutions worldwide. PTI
According to an analysis of MSCI Barra indices, a measure of returns from various stock markets across the world for foreign investors, Indian stocks have given the highestnegative return among the four BRIC countries till July 11.
Indian stocks have provided a negative return of over 41 percent so far this year, while China and Russian markets havegiven losses of 25.55 percent and 10.15 percent, each.
At the same time, investors have actually gained in Brazil, although marginally, with stocks there rising 0.13 percent since the beginning of this year, according to ananalysis of performances of MSCI Indices for various nations.
"India was among the best performing markets last year, but the correction suffered by the domestic market this year has been very severe which has sent it into a downward frenzy," Arun Kejriwal Director of Kejriwal Research andInvestment Services (KRIS) told PTI.
Another reason why Indian markets have performed badly is that all the macro economic indicators which were driving the bulls last year such as strong GDP growth, strengthening of the Indian currency and inflation at controlled levels, haveall back-fired this year, Kejriwal added.
Also, for the second month in a row this fiscal the industry performed poorly with industrial growth, as reflected by the Index of Industrial Production (IIP), dipping to 5percent in April-May against 10.9 percent a year-ago.
Besides, the soaring inflation has been hogging the limelight since the past few months and the rise in the prices index to double-digit figures has led the Government to takestrict measures to curb the surge.
Inflation rose to 11.89 percent for the week ended June28, against 4.42 percent in the same week a year-ago.
Brazil is one of the few emerging nations which have actually managed to provide gains of 0.13 percent in theperiod of little more than six months so far this year.
"Brazil has performed relatively better as its ethanol and sugar reserves provide it an insulation from the rising global crude oil prices leading the stock market to givecomparatively better returns," Kejriwal said.
Besides, MSCI Barra's emerging market index, which includes all the developing world markets, has also given negative returns to foreign investors to the tune of 16percent so far this year.
In the past three months also, Indian stocks have performed badly in comparison to other BRIC markets with a negative return of 28 percent. In comparison, stocks in China have dropped 15.43 percent, while those in Brazil and Russia have slipped 7.52 percent and one percent respectively, theMSCI indices data revealed.
In July so far, Chinese stocks have been able to provide investors with positive return of over 2 percent and Indianequities have given marginal negative returns of 0.06 percent.
However, Brazil underperformed with negative returns of over 9percent and 7.50 percent by Russia in July so far.
MSCI Barra is a leading provider of investment decision support tools to investment institutions worldwide. PTI
