India's stockmarket rally runs out of steam

India's BSE Sensex index fell early this week, and the country's economic outlook is shaky.

Narendra Modi visiting a hospital
Prime Minister Narendra Modi is focusing on the clash with China
(Image credit: © Indian Government / Handout/Anadolu Agency via Getty Images)

Has India’s stockmarket bounce run out of steam? The BSE Sensex index has been enjoying its longest winning streak since November, says Ronojoy Mazumdar on Bloomberg, rising for four weeks. Yet the index dipped early this week. The world’s third-worst hit nation by number of Covid-19 cases, India’s economic outlook is shaky.

The market is up by 35% since the March low, but that doesn’t mean the rally is over, Hemang Jani of Motilal Oswal Financial Services tells Aashika Jain on Forbes. On three of the four previous occasions that the market has plunged by more than 30%, the subsequent six-month returns on the Nifty 50, the index of top blue-chips, were at least 35%.

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Markets editor

Alex is an investment writer who has been contributing to MoneyWeek since 2015. He has been the magazine’s markets editor since 2019. 

Alex has a passion for demystifying the often arcane world of finance for a general readership. While financial media tends to focus compulsively on the latest trend, the best opportunities can lie forgotten elsewhere. 

He is especially interested in European equities – where his fluent French helps him to cover the continent’s largest bourse – and emerging markets, where his experience living in Beijing, and conversational Chinese, prove useful. 

Hailing from Leeds, he studied Philosophy, Politics and Economics at the University of Oxford. He also holds a Master of Public Health from the University of Manchester.