A bear market is approaching for Indian stocks, according to three charts.

Indian stocks are already falling from all-time highs as a result of rising inflation and the eradication of international easy-money schemes . The value of the Indian stock markets is now down almost 20% from its peak of $3.7 trillion dollars in January .

NEW DELHI: Indian stocks are already falling from all-time highs as a result of rising inflation and the eradication of international easy-money schemes, according to three charts.The S&P BSE Sensex Index has fallen more than 15% from its high of October, almost equaling a 20% decline that indicates a bear market.The selloff comes as inflation rises and a record rupee decline have pushed the nations central bank to join global benchmarks in raising interest rates.The value of the Indian stock markets is now down almost 20% from its peak of $3.7 trillion dollars in January.

According to Benaifer Malandkar, chief investment officer of Raay Global Investments Pvt., the markets should further correct from here.It is expected that the outcomes of the Feds actions will be priced in by the second quarter, the most negative news.Flights To the United StatesOverseas investors have been selling Indian stocks at a sluggish rate, withdrawing around $32 billion from the market since September.Foreigners' retreat is part of a surge affecting countries such as South Korea and Taiwan.

We will see redemptions across EMs until the US Fed rate hits its peak.Forecasts by Rosy The decline in Indian stocks has been attributed to a valuation decline for the time being.Earnings estimates for the NSE Nifty 50 Index are yet to show a significant decrease like those reported in MSCI Inc.'s broadest measure of Asian equities.Strategists at Sanford C. Bernstein Ltd., Bank of America Corp., and JPMorgan Chase & Co. have expressed dissatisfaction with India's earnings optimism over the last few weeks.

Small-cap stocks that are struggling Aversion to investor risk has hit smaller stocks, with gauges of small and mid-cap Indian stocks already entering bear markets.Market breadth has slowed, with only 16% of S&P BSE 500 Index stocks trading above their 200-day average level, the lowest rate in two years.