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CY 2020 Saw The Third Biggest Drag On Nifty In 25 Years; YTD Return Positive


This year has been an unprecedented one in many ways amid the coronavirus pandemic. And how can we forget stock markets- which are the economic health indicator of any nation. Now as per a leading data site's, datawrapper report, in last 25 years time, the current calendar year has had the third maximum drag on the Nifty to the tune of 35%.

 CY 2020 Saw The Third Biggest Drag On Nifty In 25 Years; YTD Return Positive

And on the highest drawdown i.e. from the peak to trough was the year 2008, the year of Lehman Brother crisis in the US, which saw markets tumbling by as much as 60 percent and this is followed by year 2001 in which markets saw drawdown of close to 40 percent.

But the situation is largely better considering that now the YTD returns on Indian benchmark indices amid the host of positives have turned positive by as much as 6 percent.

Talking of benchmark indices, they topped their earlier lifetime highs in the month of January this year but soon crashed owing to the economic implications of the Covid 19. Nonetheless now, the hopes of a vaccine have improved the sentiment and every other day Nifty and Sensex are logging new lifetime highs.

According to Morgan Stanley, we remain in a bull market that started in March. "Even though one should expect corrections along the way, the equity market may have more legs before it tops out," it said in a recent report.

"COVID-19 infections appear to have peaked, high-frequency growth indicators are coming in strong, government policy action is beating expectations, and Indian companies are picking up activity through the pandemic. Thus, we expect growth to surprise on the upside," it added.

Read more about: nifty coronavirus
Story first published: Monday, November 23, 2020, 18:28 [IST]
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