Equities Experiencing An Extended Ebb

By now it is pretty evident that the stock market is heading towards a phase of lower returns from equities. In fact, this downcast trend is not only expected to last for the next two to three quarters, but extend beyond. Also, if government measures fail, market mayhem can only intensify. It is no surprise, keeping in mind that India’s economy is currently going through one of its worst phases. According to data shared by Finnovate, a leading research and events firm, India’s GDP for FY19 was 6.80 per cent —lowest in the last five years. According to another report published by Asian Development Bank (ADB), inflation rate during FY 2019-20 may rise up to 4.1 per cent. If this situation prevails, which is more likely, then the rate of return from the equities market in the coming few quarters is expected to take a breather. The rate of return from equities is expected...