Stocks Nearing Bear Market, More Pain Ahead, According to Three Important Charts

Indian stocks have plunged from all-time highs to bear levels of 15% . The country's stock market value is currently down nearly 20% from its peak of $3.7 trillion dollars in January .

As rising inflation and the end of global easy-money regimes send Indian stocks plummeting from all-time highs, three charts reveal that the downturn is unlikely to end anytime soon.The S&P BSE Sensex Index has declined more than 15% from its October peak, nearly touching the 20% mark indicative of a bear market.The selloff comes as rising costs and a record decline in the rupee have compelled the Indian stock markets to join global leaders in raising interest rates.The country's stock market value is currently down nearly 20% from its peak of $3.7 trillion dollars in January.

The outcome of the Feds actions is expected to be fully balanced by the second quarter, with investors selling Indian stocks at a record rate since September.The retreat of foreigners is part of a wave affecting nations such as South Korea and Taiwan.India is not in isolation because it is a member of the emerging market basket, and the EMs are clearly out of favor, according to Raay Globals Malandkar.We expect redemptions in EMs to occur only until the US Fed rate reaches its peak.Rosy Estimates: So far, the decline in Indian equities has been attributed to a valuation decrease.The NSE Nifty 50 Index's earnings estimates are yet to reach a significant decline like that seen in MSCI Inc.'s broadest measure of Asian equities.

Stocks may be cut even higher if the market recovers.Suffering Small-CapsInvestor RiskAversion has harmed small- and mid-cap Indian stocks, with indicators indicating that they have already entered bear markets.Market breadth has weakened, with only 16% of S&P BSE 500 Index stocks trading above their 200-day average level, the lowest level in two years.