A look at the numbers: India’s share market, which is widely seen as a safe haven for investors looking to cash out after a market crash, is showing signs of strain as its economy continues to stumble.
The Sensex and Nifty indices have fallen by about 7% in the past 12 months.
The benchmark has lost 7.6% of its value since October last year, when the global financial crisis erupted.
India’s rupee is weakening, but not by as much as the rest of the world, according to economists at PwC.
“The global financial turmoil and the India market are having an impact.
It is a challenge, but we have to be patient and not give up,” said Pwc India economist Akshar Venkatraman.
The rupee has been the world’s currency in recent months.
But a slowdown in manufacturing and exports have weakened demand and the rupee’s value has dropped by about 8%.
It has lost more than 20% of the value it once had, according a Reuters analysis of data from the Reserve Bank of India.
India’s stock markets have been in free fall for the past year.
Investors are flocking to the country as it tries to shore up its faltering economy amid the global economic slowdown.
The country’s benchmark Sensex is down by almost 40% over the past month, while the Nifty is down 13%.
The S&P 500 is down 16%.
The FTSE is down 17%.
The rupees are losing their value and investors are fleeing the market.
“It’s not only the stock market, the market is a huge risk for the rupees.
The rupee was seen as safe haven and a safe place to cash in.
Now the market has lost about 25% of that.
That is a big blow,” said Venkatrantan.
Investors have been reluctant to invest in India’s government-controlled banks as they fear they will lose their shareholding.
India is a net creditor to its lenders, according an IMF study.
The RBI has been taking steps to rein in the ruases debt burden.
The government has cut interest rates and raised the capital requirement for the government-run banks.
The government has also been trying to ease its debt burdens, but its efforts are unlikely to be enough.
“The government is getting some relief from the RBI and other central banks.
They are easing their bond purchases, but the economy has taken a big hit,” said S. Raghavan, senior economist at Societe Generale in London.
Investor sentiment is low and uncertainty is building as investors fear a major financial crisis is looming in India.
India has already suffered two financial crises since the global downturn, with the global economy shrinking and a collapse in its debt pile.
The global market is still recovering from the global recession in 2008 and 2010.
But it is struggling to regain momentum after a massive rally in November.
“In terms of the financial market, India is not in good shape and that has a lot to do with the government’s handling of the ruasing situation,” said Vishnu Vittal, senior research analyst at RBS in New York.