Market Indicators Point To More Pain For India Assets: Key Points

Indian bourses fell over 2% in April and have so far closed deep in the red on all days . The Sensex lost 2,041.96 points or 3.72 percent for the week ending on May 13 .

The stock markets have been shaken by international markets benchmarks, which have been weakened since Russia assaulted Ukraine late in February, China lockouts, and fears of higher interest rates have fueled panic.Global trends, wholesale price-based inflation data for April, and corporate's ongoing quarterly earnings are the major driving factors.Indian bourses fell over 2% in April and have so far closed deep in the red on all days.On the domestic front, the Sensex lost 2,041.96 points or 3.72 percent for the week ending on May 13, due to inflation worries and the flow of capital on flight-to-safety trades.

The movement of the dollar index, crude oil prices, and rupee direction will all play a part in the Indian stock market, according to Santosh Meena, Head of Research at Swastika Investment, who reported in the first fortnight of this month.The Indian stock market fell a little over Rs 25,200 crore in the wake of a global interest rate increase and concerns about rising COVID cases.Bears have dominated equity markets, but they seem to be getting a little oversold and preparing for a rebound.The US stock market's sell-off, especially in tech stocks, was extremely severe, and there is some hope in the last two trading sessions that may give the bulls some respite, according to Santosh Meena.

Despite the RBI raising rates, the expected interest rate differential dynamic and flight-to-safety trades suggest a gloomy mood, according to Barclays analysts.This is compounded by the gloomy possibility that central banks will hike rates despite sharply losing growth.Indian crude prices have soared sharply and reached $100 for the third month in a row after supply disruptions from the Russia-Ukraine war.Last week, the rupee hit new record lows.In fact, the rupee stood at a record low against the dollar on May 9, as it stood at 77.44.

After falling to a new all-time low of 77.50 on Thursday, India's forex reserves dropped for the ninth week in a row to $595.954 billion, wiping out the country's FX war chest accumulations of a year in just about two months, as the RBI was compelled to step in to raise the dollar.That was for a week before the rupee dropped to its all-time lows, suggesting further erosion.