Despite volatility in markets, Sensex, Nifty to the wider capital markets have performed better than their peers, revealed Sebi chairman, Ajay Tyagi on Friday. He said global capital markets have been quite volatile in the current year, and are likely to remain so due to uncertain oil prices, move towards more formal monetary policies by central banks and US-China trade dispute. These factors have also affected the Indian markets.
1/6"In terms of volatility, indices return, Indian markets have not performed much worse. In fact, they have been better off when you compare with either major developed economies or emerging markets," Tyagi said in a speech at CII financial markets summit. Image Source: Pixabay
2/6Statistics: 1. In April-November returns on Nifty have moved up by about 6.5 per cent. Although trailing the returns on Dow Jones (8 per cent), it is higher than stock indices of other countries such as UK (-1 per cent), China (-18 per cent), Brazil (5.7 per cent) and Japan (4.5 per cent). Image source: Reuters
3/6The volatility in Indian equity market at 12 per cent, in the period, is among the lowest compared to major developed and emerging markets like UK (12 per cent), US (16 per cent), China (19 per cent), Japan (17 per cent), South Korea (14 per cent), Hong Kong (19 per cent) and Brazil (21 per cent). Image Source: Pixabay
4/6During April-November, the rupee saw a depreciation of around 7 per cent against the US dollar, which is around the same level as the depreciation in the Japanese Yen (-7.3 per cent) but better than many other jurisdictions like China (-10.81 per cent), UK (-10.10 per cent), Europe (-8.73 per cent) and Brazil (-16.85 per cent), he said. Image Source: Pixabay
5/6Capital market has aided the growth of the country's economy by providing much needed funds to the corporate sector, he said. A record amount of Rs 8.8 trillion was raised from the domestic capital market during 2017-18 (through equity and debt) against the Rs 7.7 trillion raised during 2016-17. In the current fiscal Rs 4.85 trillion has already been raised. Image Source: Pixabay
6/6"A vibrant capital market has to play an increasingly pivotal role to facilitate fund mobilisation for sustaining India's projected economic growth momentum. This role becomes even more important, given the stress on the banking sector," Tyagi concluded. Image source: Reuters