Indian investors better brace for an extended stock market downturn

India’s stock markets are in the throes of a bear hug. The National Stock Exchange’s (NSE) Nifty 50 index has shed nearly 11% of its value since July 5, when finance minister Nirmala Sitharaman announced a slew of proposals, particularly tax surcharges that put off foreign portfolio investors (FPIs), in her maiden union budget. The equity deluge, over the last six weeks, has wiped out roughly Rs13.4 lakh crore ($190 billion) of investor wealth on NSE, as the bourse’s total market capitalisation fell from Rs151.46 lakh crore in early July to Rs138.05 lakh crore on Aug. 14.