Markets Still Bearish Amid FII Selling Spree

As investors tend be cautious with their investments, the sentiments point towards a discouraging macroeconomic environment. The US-China tensions eased slightly, but the tensions still persist with apprehensions of a full-blown trade war. Even as consumption demand in the economy slowed down, market figures showed a recovery. A slower growth in the Indian economy is observed as the GDP growth for the June quarter fell to 5 per cent, which is the slowest in six years.During the fortnight, DAX, which is a blue chip stock market index that consists of the 30 major German companies which trade on the Frankfurt Stock Exchange, was the best performer globally as the index was up by 5.29 per cent. It was followed by CAC 40, DJIA and S&P 500 indices, which were up by 4.92 per cent, 4.71 per cent and 4.61 per cent, respectively. Shanghai index performed positively, but Hong Kong’s Hang Seng index was affected due to the ongoing violent clashes and unstable atmosphere between the citizens demanding democratic polity from the Chinese government. Nikkei index was up by 2.93 per cent. With UK Prime Minister’s comments about wanting a successful Brexit deal with the EU, FTSE 100 was up 1.98 per cent, but it still underperformed due to decline in imports from China which impacted the country’s mining sector as UK majorly buys minerals from China. 

As the bumpy ride in the economy continues, Sensex and Nifty recovered and were up by 1.21 per cent and 1.6 per cent, respectively. The Smallcap and Midcap indices recovered during the fortnight and were up by 4.30 per cent and 3.17 per cent, respectively. The Auto index was up by 2.37 per cent. The cabinet’s approval for easing of FDI policies revived indices such as Power, which was up by 3.68 per cent and Metal, up by 3.3 per cent. The Bankex index went up by 1.59 per cent and FMCG index was up by 2.62 per cent. The best performer among the sectoral indices was Realty, which was up by 4.02 per cent. The IT index had a comparatively poor performance as it increased by 0.96 per cent during the fortnight. 

Investments by domestic institutional investors failed to match up to disinvestments by foreign institutional 

As the bumpy ride in the economy continues, Sensex and Nifty recovered and were up by 1.21 per cent and 1.6 per cent, respectively. The Smallcap and Midcap indices recovered during the fortnight and were up by 4.30 per cent and 3.17 per cent, respectively.

investors (FIIs). The trading data showed that the FIIs were net sellers with a net outflow of Rs. 12292.7 crore, whereas the DIIs were net buyers to the tune of Rs. 11483.16 crore. 

The prevailing bearishness in the markets has disappointed the investors. The gold prices surged in the month of August with most of the central banks globally buying gold. Gold is up by almost 1.78 per cent in the last few weeks and it is up by 21.13 per cent YTD. The Brent crude oil in the last couple of weeks was bullish and was up by 5.47 per cent. Since August 1, 2019, Brent crude oil has gone up by 3.45 per cent.