BENGALURU – The Indian stock market is currently facing challenges as foreign capital continues to flee and corporate earnings fall short of expectations. Analysts warn that expensive stocks, which saw significant gains during the post-COVID investment surge, are likely to encounter a turbulent period ahead.
Since reaching a record high on September 26, India’s benchmark Sensex index has declined by 8.2% as of Monday, significantly underperforming other major Asian markets. In contrast, Hong Kong’s key index rose by 3.2%, while Shanghai saw an impressive increase of 10.3%. Japan’s Nikkei 225, however, experienced a downturn, falling by 2.4% during the same timeframe.
This slump in the Sensex reflects broader concerns about the sustainability of stock valuations in light of disappointing earnings reports and the withdrawal of foreign investment. As the market grapples with these headwinds, the outlook remains uncertain for investors who are navigating this challenging landscape.
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