New Delhi: After having emerged as one of the top performers in the equity markets in 2007, India became the fourth worst performer among all the emerging markets in the first month of 2008, with a loss of close to 16%, according to financial market data provider Standard and Poor’s.
“If investors thought the market could only go up, January’s wake-up call pulled them back into reality,” S&P said in its monthly update on world equity markets.
Global stock markets lost as much as $5.2 billion as bearish sentiment prevailed across emerging and developed markets to mark one of the worst starts to a new year, S&P said.
“There were few safe havens in January as 50 of the 52 global equity markets ended the month in negative territory, with 25 of them posting double-digit losses,” S&P’s senior index analyst Howard Sliverblatt said.
While developed markets lost 7.83%, emerging markets shed even more at 12.44%.
All the 26 developed markets posted negative returns, with 16 of them losing over 10 per cent. The overall trend in emerging markets was also disappointing despite gains seen by Morocco (10.17%) and Jordan (3.11%).
Among emerging markets, Turkey was hit the hardest losing 22.7%, followed by China at 21.4%. Russia lost 16.12%, while India lost close to 16%, S&P said.
“High volatility, quick turnarounds in both the market and investor sentiment, and drastically lower stock prices prevailed throughout the month.” Silverblatt said.
Among developed markets, the US and UK lost 6.07% and 8.85% respectively.