An investment bank has warned investors to brace for the worst, with the sector still a big risk.
Top investment banks are among the largest firms in India, accounting for more than $5 trillion in assets, according to a report by research firm EY.
The report also found that nearly half of Indian investors are still not confident about their chances of ever owning shares of major firms.
The firm’s report, titled “Investing for a Living: What is Investing?” said that in the past 10 years, India has experienced the worst asset price decline in the world.
The global financial crisis in 2008 left many investors out of the action and many are still struggling to come to terms with the consequences of the collapse.
Investors can also take some comfort in the fact that in 2019, the country saw a rebound in stock market prices, with a rise of more than 10% from the previous year.
But even if stocks have recovered since then, the Indian market is still facing its biggest risks.
Investment bank Institutional Investor Group (IIG) said in its report that the sector remains vulnerable to the “possibility of a repeat of the 2008 global financial meltdown.”
According to IIG, the major banks are still underperforming, with India accounting for just 2.7% of global banks, compared to 5.2% for Germany and 5.6% for the US.
IIG’s research also said that the biggest challenge for investors is a lack of knowledge about the market.
The IIG said that it is not only investors who are not fully aware of the fundamentals of the Indian stock market.
In the last five years, the average time for Indian stocks to rise has been almost two years, with no major stock index to rise for the past five years.
According to a survey by IIG and The Nikkei Asian Review, only 11% of respondents had a specific job description that includes investing in stocks.
In addition, only one in ten respondents said they have a clear idea of how to invest.
The survey also found a lack in understanding about what stocks are, where they are traded and what the fundamentals are of them.
The second largest investor in India is BNP Paribas.
The firm’s shares have risen nearly 15% since the start of the year, as well as over 10% since January.
The company is one of the biggest shareholders in BNP Capital Markets.
India is still one of Asia’s biggest economies, with more than half the world’s population.
The country’s gross domestic product (GDP) was $2.8 trillion in 2018.
