Dip in Exchange Turnover: Is Modi Rally Over?
What may be termed as the waning of Narendra Modi-led euphoria from the markets the turnover on the stock exchange has remarkably dipped in the last few months. Sensex has reached pre-May 2014 levels, allegedly signalling declining interest in the government.
Between June 2014 and August 2015, the daily average turnover both in cash and derivates on the equities segment was recorded at Rs 3.4 lakh crore. This declined further to Rs 3 lakh crore between September and November in 2015. The figure reached Rs 1.8 lakh crore in December 2015.
Market experts claim that since March 2015, the market has tanked steadily. The Sensex fell around 6 percent in the thee months to September – the steepest loss in a quarter since 2011.
However, the market sentiment wasn’t as low as we have also seen benchmark indices rallying about 12 percent.
However, there is a section of market experts who believe that since emerging markets are not doing well all across the world, so India is no exception. The foreign investors are pulling out money from the Indian market in bulk. The month of December saw those selling shares worth more than Rs 3,300 crore, paring year-to-date purchases to about Rs 14,800 crore.
But saying this all, Modi government is also to be blamed for the slump in the markets. Unable to initiate key reforms on Land Laws and Goods and Service Tax (GST), Modi government may only make the situation worse in coming future.