With a Test match average of over 50 and a one-day average of close to 40, Rahul Dravid is regarded as one of the greatest batsmen of all time. During his playing days, the Team India coach loved to stand on one side against high-quality bowling attacks, especially on difficult pitches. The performance of the Indian stock market this year has been compared to Rahul Dravid’s batting on top of the green against world-class swing bowling.
The Indian stock market index Nifty is flat on a year-on-year basis. But the Indian stock market stands out when compared to other global markets and other asset classes.
“Year-over-year (YTD) performance in relative terms paints a better picture. The US Nasdaq is down more than 30%, the Hang Seng is also close to -30%. Along with other major developed and emerging markets , most of which are down over 5-10%. Even debt funds in the domestic markets have given around 1-3% returns due to the impact of rising interest rates.Vivek Goel, Joint Managing Director, Tailwind Financial Services “Gold and silver have given returns of around -2% to -5%,” he said.
“Now, compared to these returns, looking at 1% nifty The performance doesn’t sound so bad does it? what’s more? While we know that the mid cap segment is more volatile, it has outperformed 2% over the same period. The kind of resilience Indian markets have shown this year has seen the Russo-Ukraine war, major sanctions impacting energy and commodity prices, inflation worries the US Fed in full swing towards a historic rate hike cycle. has twisted, which in turn has caused concern. Due to global supply pressures regarding the slowdown and China’s lockdown policy to contain the spread of COVID.”
Mr Goel takes an analogy to cricket to describe the performance of Nifty this year: “Think of it in terms of cricket. With world-class swing bowling on top of the green, we honored Dravid for his defence. In a way, the same parallel can be drawn for how the Indian markets have performed this year. As investors, we want the markets to grow linearly by providing a targeted 12-15% return annually, but the truth is that the bulk of this annual return is created in bull markets and a significant base prior to that. accidents are to be reduced. portfolio in a volatile environment.”
His advice to investors: “Investors would do well to keep this in mind as they sit down to review their portfolio and its performance. It will be important to consider relative performance rather than just looking at the absolute performance of a scheme when making a decision.” Also, as we clean our homes in Diwali, cleaning would be a good idea for our portfolio as well.With India’s position strengthening globally, a well-positioned portfolio will take the next phase of the market cycle. will be able to reap the benefits.”
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