$1 tn market rout hits investors, chokes consumer spending

India's longest equity slump in nearly three decades wipes out roughly $1 trillion in market capitalization, the major blow to retail investors is denting consumer spending and threatening to further slow growth in the world's fifth-largest economy.

- Reuters

Investors trying to catch their breath may have to wait longer for the selloff to ebb, analysts say, as uncertainty about the impact on global growth from a burst of policies under US President Donald Trump adds to worries over weak domestic earnings and persistent foreign outflows.

That spells more trouble for consumer spending and the broader economy, which is expected to grow at its slowest pace in four years in the current financial year due to weak urban demand.

Consumer spending, already hurt by sluggish income growth and high inflation, makes up half of India's gross domestic product.