Stocks Bid Goodbye To 2019 With Better Performance!
The year 2019 was filled with many hiccups on domestic and global levels. On one hand, investors were worried about the depth of the economic slowdown with trade war tensions fuelling in, while on the other hand, the governments intervened to revive demand in the economy with tax cuts and fiscal boosts. According to investors, market breadth remains in favour of advances. Professional and private investors prepare to step into 2020 with mixed sentiments pondering over the direction of the market for the year.
Benchmark indices were trading in positive for consecutive sessions as US President Donald Trump said that he intends to hold a deal signing ceremony with President Xi Jinping. Hence, NASDAQ registered an increase of 1.49 per cent, S&P 500 also increased by 0.93 per cent and Dow Jones Industrial Average (DJIA) registered a growth of 0.80 per cent. Along with a positive deal outlook, Chinese manufacturing data showed an improvement by supporting the gain of Shanghai index by 1.86 per cent and of Hang Seng by 2.95 per cent. Following a pullback in Chinese companies, despite more than expected manufacturing data, Nikkei was dragged down by 1.23 per cent. For the fortnight, European indices were trading in negative such as DAX was down by 1.18 per cent and CAC 40 went down by 0.16 per cent except FTSE, which was up by 0.90 per cent.
As for the domestic markets, before entering into 2020, Sensex and Nifty embedded positive sentiments amongst investors as they increased by 1.51 per cent and 1.67 per cent, respectively. The domestic sectoral indices registered a growth during the fortnight as Small-Cap and Mid-Cap indices were up by 1.42 per cent and 2.58 per cent, respectively. Metal index was up by 7.97 per cent after an improvement in China and US economic data, which is beneficial news for the sector. Auto index increased by 4.16 per cent while, FMCG and Power indices were up by 0.73 per cent and 1.37 per cent, respectively. During the fortnight, IT index was also up by 2.58 per cent. Realty index also performed well increasing by 2.51 per cent with fiscal boost announcement made by Union Finance Minister Nirmala Sitharaman. The government unveiled Rs 102 lakh crore national infrastructure pipelines in accordance with the vision of the government to make India a US$ 5 trillion economy by 2024-25.
Institutional trading data showed that FIIs were net buyers to the tune of Rs 8,481.9 crore while DIIs were net sellers with an outflow of Rs 5,596.5 crore.
Benchmark indices were trading in positive for consecutive sessions as US President Donald Trump said that he intends to hold a deal signing ceremony with President Xi Jinping
The gold prices surged in the month of December as well. Gold is up by almost 2.45 per cent to Rs 40,120 for 10 gram of 24 carat gold in the last few weeks and it is up by 2.69 per cent since the beginning of this month. The Brent crude oil, in the last couple of weeks, was up by 1.01 per cent. Crude oil prices rose higher after the Energy Information Administration posted an inventory draw of 5.5 million barrels in its last weekly petroleum status report for 2019. Since the beginning of the month, Brent crude oil has gone up by 8.33 per cent. In 2019, the rupee got weakened by 2.25 per cent. On December 26, Rupee ended at the lowest level against dollar since December 4, ending at Rs 71.31 per dollar.
