Markets To Take Direction From Karnataka Poll Results And Trade War Developments
The most interesting aspect of the markets in the past couple of weeks has been that the FIIs and DIIs have been net buyers in the markets, even as the prices have been falling steadily. The FIIs were net buyers to the tune of Rs 8071.17 crore, while DIIs have been net buyers to the tune of Rs 2432.55 crore.
The global markets tanked in the past fifteen days, fearing negative fall-out of trade war triggered by the US. None of the markets managed to close in the green, if we consider the data of the last couple of weeks. Dow Jones Industrial Average closed down by 4.47 per cent, S&P 500 slipped 4.59 per cent, even as Nasdaq tanked 4.50 per cent. European markets fell in line with their global peers, with the FTSE 100 losing 4.65 per cent, DAX dropping 4.53 per cent while CAC 40 slipping 3.95 per cent. Hang Seng was the best performer, as it slipped by a mere 1.44 per cent in the past couple of weeks. Nikkie was down 3.28 per cent, while Shanghai dropped 5.24 per cent.Sensex relatively outperformed the US markets as it dropped 2.51 per cent in the last couple of weeks. Nifty closed down 2.79 per cent. The outperformance came from the mid-cap stocks as the mid-cap index was down by 1.41 per cent during the period. The small-cap index was down by 2.76 per cent. Metal index was the worst performing index, slipping by 6.62 per cent. Realty index was the only other sectoral index that was down by more than 6 per cent in the last 15 days. Power index was among those sectoral indices that were down by less than 2 percent for the given period. Auto index slipped by 2.26 per cent, Bankex by 2.39 per cent, FMCG 2.27 per cent and IT 3.89 per cent.
The most interesting aspect of the markets in the past couple of weeks has been that the FIIs and DIIs have been net buyers in the markets, even as the prices have been falling steadily. The FIIs were net buyers to the tune of Rs 8071.17 crore, while DIIs have been net buyers to the tune of Rs 2432.55 crore.
The prices of gold firmed up by 2.26 per cent in the past couple of weeks owing to the trade war fears. Silver was up by 2.48 per cent, while crude oil price was up bymore than 8 per cent. Indian markets have underperformed their global peers on q YTD basis. However, the key Indian benchmark indices lost less than their global peers in the past couple of weeks. Going ahead, Indian markets will keep an eye on election results of Karnataka, trade war developments and whether or not the interest rate cycle hardens. While few experts believe that the Sensex can go down to 30,000 level in the near term, in the long term, India’s positive story remains intact.
