Investors looking for the latest and greatest stock picks are starting to get some relief after the global market tumbled on Friday as investors blamed a slowdown in China for the slide.
Analysts have long blamed a slowing Chinese economy for the slowdown, which in turn has hurt the Indian economy.
But analysts now say that China is no longer the main reason for the market’s plunge.
India’s S&P 500 index was down more than 1,000 points to a fresh intraday low of 5,908.91, while the benchmark S&P/ASX 200 index was up 0.5 percent to 3,094.55.
In the past 24 hours, India’s benchmark Sensex, the top index in the Indian stock market, lost 0.2 percent to 27,938.42.
The Sensex is up 2.5 times this year.
India was a top-10 stock in both the S&E and emerging markets in February.
The country has been in the news a lot lately, after Prime Minister Narendra Modi’s party won the election.
The Narendra Modi government has been making sweeping economic reforms, including rolling out of cashless payment of the cash-strapped nation.
The latest stock market drop comes after the Indian government said the country’s banks were on a ”slow and steady” pace of recovery and that it was considering a bailout for them.
The government has said that it wants to get to the bottom of a suspected fraud case involving the countrys largest bank.
In a letter to India’s central bank on Thursday, Indian Finance Minister Arun Jaitley said the government has decided to offer an unprecedented rescue package for banks and said it is working towards a plan for the rescue package.
The country’s financial institutions have been on a slow and steady recovery since 2014, with bank deposits at their record high of $1.9 trillion in October 2016.
The economy is expected to grow by 4 percent this year and 7.3 percent in 2021, according to a report by the World Bank and the IMF.