The Sensex is down by 5.28% since the last Dussehra. On Tuesday, the Sensex closed at 58,065.47 points while on the eve of Dussehra in 2021 it closed at 61,305.95 points.

Nifty is down by 5.80% during the same period from 18,338.55 points to 17,274.30 points. This is the first instance since 2011 that both benchmark indices have witnessed such losses. The Sensex and Nifty had plunged by 21.53% each during the same period in 2011 compared to that in 2010.

Also Read: Reliance, Sanmina announces completion of joint venture

The markets were on the downside due to various factors that adversely affected the production and supply chain globally. The uncertainties at the global level caused a significant depreciation in the value of the Indian rupee. Foreign institutional investors (FIIs) were sharply engaged in selling, incited by the hawkish US Federal Reserve policies.

Also Read: Billionaire Ray Dalio steps down as Co-CIO of Bridgewater Associates

Global equity markets have suffered heavy losses this year due to inflation-curbing tools used by central banks around the globe. As the central banks tried sucking liquidity from the economy, the markets reacted negatively.

The Russia-Ukraine conflict has created global food crises. The energy crisis in Europe has critically affected the major economies around the globe. The conflict also elevated inflation at the global level.

Also Read: Reliance Jio launches beta trial of Jio True 5G services in four cities

The Reserve Bank of India (RBI) has also raised the repo rate by 190 basis points since May 2022 to counter the raging inflation. Asian Development Bank (ADB) & RBI both have cut India’s Gross Domestic Product growth projection from 7.2% earlier to 7%.

Likewise, India Ratings & Research (Ind-Ra), a subsidiary of Fitch Group, also lowered its GDP growth projection for India by 10 basis points to 6.9%.

Also Read: Reserve Bank of Australia hikes interest rates by 25 basis points

Since last Dussehra, all sectoral indices except BSE Power, BSE Auto, BSE FMCG and BSE Capital Goods have reported a fall. The four indices in the green territory have risen between 5% to 15%.

The BSE IT & BSE Realty were down by 21% each. BSE Metal & BSE Healthcare lost 15% and 12% respectively. The BSE MidCap & SmallCap lost 7% and 4.3% respectively during the same period.

Also Read: Jack Dorsey in text with Elon Musk called Facebook ‘swamp of despair’

Despite all these limitations, analysts predict that Indian markets will still perform better than other market peers. This prediction is grounded on the strong macroeconomic data where the economy has shown positive signs.

Auto majors have recorded impressive sales growth in recent quarters. Retail auto sales in September surged by 11% compared to that in the previous year, monthly sales data from the Federation of Automobile Dealers Associations (FADA).

Also Read | What is the cost of 1 GB data in India?

Meanwhile, goods and services tax (GST) collection is also touching new highs in recent months. September’s GST collection stood at 1.47 lakh crore. Power consumption also grew 13.3% year-on-year (YoY).