Investing.com -- Indian stocks have dropped to their lowest levels since June, as disappointing corporate earnings this season have dampened investor optimism for an economic recovery.
On Tuesday, the NSE Nifty 50 Index slid 1.4% to 23,024.65, a decline of over 12% from its peak in September. This places the Indian equity benchmark among the worst performers in the region since Donald Trump's inauguration. Major Indian companies such as Reliance Industries (NSE: RELI ) Ltd. and ICICI Bank Ltd (NSE: ICBK ). have been significant contributors to this downturn on the MSCI Asia Pacific Index.
Two weeks into the earnings season, only three out of the ten Nifty members that have reported so far have exceeded estimates. Despite strong inflows into mutual funds, foreign investors have sold approximately $5 billion in shares this year, offsetting much of the domestic investment and intensifying the drop in share prices.
Shares of Zomato (NSE: ZOMT ) Ltd. and Swiggy Ltd., two major food delivery companies, plunged on Tuesday. The earnings report from Zomato, India's largest food delivery service, heightened concerns over increasing competition in the quick-commerce sector.
Investors are now shifting their attention to the federal budget announcement scheduled for February 1. They are hoping for measures that will stimulate consumer spending and promote economic growth.
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