Performance in the Indian stock market this year compared to the battle of Rahul Dravid

With a test match average of over 50 and a one-day average of nearly 40, Rahul Dravid is considered one of the best hitters. During his playing days, the Team India coach was also particularly adored for holding one end up against high-quality bowling attacks on difficult fields. The performance of the Indian stock market this year is comparable to that of Rahul Dravid on a green top against world class swing bowling.

The Indian stock index Nifty is flat on an annual basis. But compared to other global markets and other asset classes, Indian equity markets stood out.

“Looking at the year-to-date (YTD) performance in relative terms gives a better picture. US Nasdaq is down more than 30%, Hang Seng is also close to -30%. The same is true for other major developed and emerging markets, most of which are down more than 5-10%. Even debt funds in domestic markets have returned around 1-3% due to the impact of rising interest rates. Gold and silver have delivered returns of around -2% to -5%,” said Vivek Goel, Joint Managing Director, Tailwind Financial Services.

“Now, compared to these returns, it doesn’t look too bad looking at a 1% Nifty performance, does it? Moreover? While we are aware that the mid-cap segment is more volatile, it was 2% over the same period. This is the kind of resilience that Indian markets have shown this year, with the war between Russia and Ukraine, major sanctions impacting energy and commodity prices, inflation concerns leading the US Fed fully into a historic The rate hike cycle has in turn raised concerns about recession and China’s lockdown policies to contain the spread of Covid, leading to global supply-side pressures.”

Goel uses the cricket analogy to describe Nifty’s performance this year: “Think of cricket. On a green top with world class swing bowling, we honored Dravid for his defense. In a way, the same parallel can be drawn with how the Indian markets have performed this year. As investors we would like to see the markets grow linearly by providing the target return of 12-15% annually, but the truth is that most of this annual return is created in a rising market and an important basis for that is minimizing of accidents in the portfolio in a volatile environment.”

His advice to investors: “Investors would do well to keep this in mind as they review their portfolio and its performance. It would be important to consider relative performance when making a decision rather than just looking at the absolute performance of a scheme. At the same time, as we clean our houses in Diwali, a similar cleaning would also be a good idea for our wallets. As India’s global position strengthens, a well-positioned portfolio could reap the benefits of the next stage of the market cycle.”

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