Indian Market Underperform It Global Peers

The global market rebounded nicely in past couple of weeks thus regaining more than 50 per cent of the correction losses. Dow Jones Industrial Average was up by 4.63 per cent, S&P 500 gained 4.88 per cent while NASDAQ was up by 0.32 per cent in past couple of weeks. European indices , inline with the US markets managed to clock gains in past couple of weeks. FTSE 100 was up by 1.84 per cent, DAX gained 3.11 per cent and CAC 40 was gained 4.69 per cent in past couple of weeks. 

Asian markets managed to outperform its global peers with Shanghai and Hang Seng gaining 5.09 per cent and 5.96 per cent respectively. Nikkie was up by 2.39 per cent.

Indian markets underperformed its global peers in past fifteen days. Sensex was marginally up by 0.40 per cent even as Nifty gained 0.35 per cent. Mid-caps and Small-caps underperformed the key benchmark indices. Mid-cap index slipped by as much as 0.44 per cent even as Small -cap index was down by 0.97 per cent. Amongst the sectoral indices it was the IT index which was the clear winner, gaining by more than 3 per cent. Metal index was the only other sectoral index other than IT index that closed in green. Auto index was the worst performing sectoral index, down by 2.86 per cent followed by Bankex which slipped by 1.20 per cent. FMCG index traded flattish in past couple of weeks and managed to close up by 0.34 per cent. Realty index was down by 1.57 per cent while power index was down by 0.82 per cent. 

The FPIs were net sellers in the Indian markets to the tune of Rs 8632.08 crores. The selling pressure was completely absorbed by the relentless buying by the DIIs. The DIIs bought into Indian equities to the tune of Rs 8340.70 crores, thus negating any effect of heavy selling by FPIs. 

Sensex touched it’s all time high in the last week of the first month of 2018. Since it hit all time highs Sensex corrected by almost 7 per cent, closing below 34000. As of now Sensex is 5 per cent below its recent highs which is also its all time high. 

Markets reacted to the developments in PNB bank as new details emerged on the illegal funding that took place to benefit the diamond merchant Nirav Modi. Apart form the news surrounding the PSU banks what shaped the market direction was the cooling off of the bond yields in US marets from its recent highs of 2.9 percent. Investors are closely watching what happens with the bond yield in US as well as in India.

Apart form the news surrounding the PSU banks what shaped the market direction was the cooling off of the bond yields in US marets from its recent highs of 2.9 percent. Investors are closely watching what happens with the bond yield in US as well as in India.