Mumbai: The sharp rally in the Indian equity market has changed course for now and hit a pause, with the carnage in global markets weighing down heavily. Indian markets were already reeling under pressure after the government presented the budget that focused on populist measures ahead of general elections in 2019 and re-imposed long-term capital gains (LTCG) tax on equities. Underperformance compared to other emerging marketsIndian markets have underperformed most key emerging markets year to date, as analysts keenly await corporate earnings recovery. Financial stocks were the key losers for Sensex, with private lenders falling the most. Sectoral losersBSE telecom index is the worst performing sectoral index, as telecom operators became a victim of the tariff war triggered by Reliance Industries Ltd’s Jio, and the index is down 16% year to date.

Source: Mint February 06, 2018 07:52 UTC