Despite Sensex Scaling All-Time High, Small-Caps And Mid-Caps Tumble

The path taken by the currency and crude oil prices; the quality of the corporate earnings and the decisions at the RBI bi-monthly meet will set the mood of the market going forward.

Despite volatility in the global bourses on account of trade war, the Indian markets had a strong week. The BSE Sensex scaled to an all-time high, driven by select large-caps such as TCS, Infosys, Reliance Industries and HDFC Bank. The NSE Nifty too traded above the crucial 11,000-mark for the first time since February this year. However, both small-caps and mid-caps underperformed both Sensex and Nifty during the fortnight. 

On the global front, most of the major indices traded in the green over the past couple of weeks. Dow Jones added 3.12 per cent, whereas S&P 500 and Nasdaq gained 2.66 per cent and 3.15 per cent, respectively. In the European markets, UK’s FTSE100 marginally added 0.70 per cent, Germany’s DAX and France’s CAC40 jumped 2.64 per cent and 2.53 per cent, respectively. Among Asian markets, Hang Seng was down 1.39 per cent during the fortnight, whereas Nikkei delivered positive returns of over 3.6 per cent during the same period. China’s Shanghai exchange recovered 1.41 per cent during the fortnight. 

On the domestic front, Sensex soared 3 per cent, whereas Nifty added 2.63 per cent. The sectoral indices traded mixed. Bankex, FMCG, IT and Auto indices gained during the fortnight, whereas Metal, Power and Realty indices traded in the red. The Small-cap and Mid-cap indices slipped 0.82 per cent and 1.84 per cent, respectively, in the two-week period. The Metal index was the worst performing index with a loss of 6.39 per cent, followed by the Realty index, which fell 2.58 per cent. The FMCG index added 2.86 per cent, whereas the IT index gained 3.24 per cent during the fortnight. The Auto index added 1.64 per cent, whereas Bankex gained 1.08 per cent. 

The FIIs have been net sellers, having sold stocks to the tune of Rs 4,257.09 crore whereas the DIIs have been net buyers, having lapped up equities worth Rs 4,361.78 crore. 

The Brent crude oil prices plummeted to about $72/barrel. Prices have weakened in recent days as OPEC member Libya reopened its ports in the east. The US crude also slid amid broader market fears that a US-China trade dispute could hit global economic growth. The gold price maintained its downward trend and touched a 7-month low during the fortnight.