Asian Indices Save The Day

Bankex ended the fortnight in green as a result of the recent rally seen in banking and financial stocks. 

In the last few weeks the equity markets worldwide remained volatile due to a number of reasons. Rising corona virus cases, possible lockdowns, delay in US’ stimulus, result of the US’ presidential elections, etc. have been some of the factors contributing to volatility in the stock markets. In the European markets DAX plunged by around 8.30 per cent during the fortnight while CAC 40 and FTSE 100 declined by 5.09 per cent and 3.90 per cent, respectively, for the same period of time. In the US, indices such as NASDAQ, DJIA and S & P 500 fell by 4.54 per cent, 4.51 per cent and 3.40 per cent, respectively.

Comparatively, Asian indices performed better on the basis various positive industry and economic indicators. The Shanghai index dipped lower by 2.64 per cent over the last few weeks whereas Nikkei and Hang Seng fell by 1.59 per cent and 0.34 per cent, respectively. The Indian benchmark indices, Sensex and Nifty, were in the red down, by 1.67 per cent and 1.72 per cent, respectively, during the fortnight. As for sectoral indices, Realty and Power indices dazzled, gaining by 7.71 per cent and 7.03 per cent during the fortnight.

Except these two, Bankex is the only other sectoral index to end the fortnight in green as a result of the recent rally seen in banking and financial stocks. The index was up by 3.47 per cent. IT seemed to continue to lose its glory as the index fell by 3.83 per cent during the fortnight. For the same period, Healthcare and FMCG indices decreased by 3.20 per cent and 2.05 per cent, respectively. The Auto index slipped lower by 1.93 per cent. Broader markets remained mixed with the Small-Cap index declining by 0.46 per cent and the Mid-Cap index increasing by 1.72 per cent.

Trading data shows that FIIs were net buyers to the tune of Rs 10,510.94 crore while DIIs were net sellers to the tune of Rs 10,615.3 crore. During the fortnight, WTI crude oil prices crashed by 10.35 per cent to USD 36.81 from USD 41.06 on growing concerns of demand recovery as a result of rising corona virus cases and also due to excess inventories and supply. Subsequently, Brent crude prices tumbled by 8.56 per cent to USD 38.97 from USD 42.62. Gold prices rose by a mere 0.38 per cent to Rs 53,150 for 10 grams of 24 carat gold.