DSIJ Mindshare

The markets depicted a substantial amount of volatility in a month which was full of surprises i.e. in May 2022. The major event in early May was the unscheduled MPC meet called by RBI amidst rising inflation. It ended up hiking repo rates by 40 bps and CRR by 50 bps. Both the benchmark indices i.e. Sensex and Nifty closed the month on a lower note. The broader markets also ended the month on a tepid note. On the sectoral front, the sectors which shone despite heavy selling were autos and FMCG whereas the one that faced a big pressure point was the metal sector. 

The current market sentiments are affected by factors such as rising inflation, aggressive monetary tightening, the Russia-Ukraine war, rising cases of COVID-19, and the rise in the crude price. In the last one month, the benchmark indices have fallen over 5 per cent whereas India VIX jumped 23.35 per cent, depicting hefty volatility.