Market Watch
Post Boris Johnson’s win; European indices went up with a more confident view on Brexit although there is a long road ahead. FTSE was up by 3.20 per cent along with CAC 40 and DAX up by 3.54 per cent and 3.42 per cent.
The fortnight ended with positive investor sentiments as the world received clarity on the much-awaited US-China trade war. As part of the phase of the trade deal, US President Donald Trump stated that the planned tariffs on $160 billion of Chinese goods which were to be implemented in December 2019, will be scrapped and also reduce the tariff to half on another $120 billion worth of Chinese goods to 7.5 per cent. All of these in exchange for the increase in Chinese imports of US agricultural goods.
During the fortnight, global indices were in Euphoria based on the positive global activities. Hong Kong’s Hang Seng registered an increase of 4.02 per cent as market reports suggested of a rebound in industrial production in China, owing to a relief from the US-China trade wars. China’s Shanghai index also went up by 3.78 per cent. US indices such as NASDAQ, S&P 500 and Dow Jones Industrial Average (DJIA) were in positive, up by 2.87 per cent, 2.49 per cent and 1.63 per cent, respectively. Post Boris Johnson’s win; European indices went up with a more confident view on Brexit although there is a long road ahead. FTSE was up by 3.20 per cent along with CAC 40 and DAX up by 3.54 per cent and 3.42 per cent.
As for the domestic markets, Sensex and Nifty was up by 0.33 per cent and 0.05 per cent, respectively. Majority of the domestic sectoral indices registered a fall during the fortnight. The Smallcap and Midcap indices were down by 1.50 per cent and 1.38 per cent, respectively. Since the FMCG sector is heavily affected by the slowdown in consumption demand, the FMCG index fell by 2.84 per cent. Metal and Power indices underperformed with a decrease of 1.63 per cent and 1.58 per cent, respectively. Bankex index was increased by 0.89 per cent whereas; Auto index fell by 0.17 per cent. With a hope of a boost from the government, Realty index was up by 2.51 per cent following IT index, which was up by 2.94 per cent.
The trading data for the FIIs and DIIs showed that for the fortnight, FIIs were net sellers to the tune of Rs 1,304.72 crore. DIIs were also net buyers to the tune of Rs 3,474.29 crore. For the fortnight, gold prices increased to Rs 39,210 for 10g of 24 carat gold, which is an increase of 0.33 per cent. For the same period, Brent crude prices went up by 7.25 per cent to US $65.34. The next fortnight may see an impact of the conclusion on the GST Council meeting.
