Global Indices Reflect Recession Fears!

Globally the markets are facing uncertainties that are propelling investors to take a cautious stance on the markets. The escalation in the US–China trade war is impacting the global economic growth negatively as expected, even as some of the experts fear a recession as an outcome of the ongoing trade war. 

China was the best performer globally with the benchmark index rallying up by 4.42 per cent, followed by Hang Seng which was up by 0.93 per cent. The US markets were under pressure with DJIA slipping by 2.51 per cent and S&P 500 sliding by 2.45 per cent. Nasdaq was down by 2.61 per cent, thus being one of the worst performing markets globally in the past couple of weeks. The Europeans markets were relatively less volatile with CAC 40 slipping by 0.02 per cent and DAX losing 0.70 per cent. The FTSE 100 was down by 2.19 per cent, underperforming its European peers. 

Sensex, in line with the global peers, was down by a little over 2 per cent, while Nifty slipped 2.52 per cent. Once again, the broader markets underperformed the key benchmark indices in the past coupleof weeks. The Midcap index was down by 4.31 per cent, while the Smallcap index was down by 4.04 per cent. The Realty index was down by 7.94 per cent, being the worst performing sectoral index. The banking sector saw some heavy selling due to which Bankex was down by 5.20 per cent. The Metal index was down by 4.64 per cent, while the FMCG was down by 3.37 per cent. Power index was down by 3.32 per cent. IT index was the best performing sectoral index in the past couple of weeks. IT index was up by 0.39 per cent. The FIIs continued their selling spree in the last couple of weeks. 

The FIIs were net sellers to the tune of Rs 922.38 crore, while the DIIs were net buyers to the tune of Rs 5855.27 crore.

The Midcap index was down by 4.31 per cent, while the Smallcap index was down by 4.04 per cent. The Realty index was down by 7.94 per cent, being the worst performing sectoral index. The banking sector saw some heavy selling due to which Bankex was down by 5.20 per cent. The Metal index was down by 4.64 per cent, while the FMCG was down by 3.37 per cent.

Apart from the trade war fears, the global equity sentiment is also negatively impacted by geopolitical tensions. The lowering of interest rates globally is not a good sign for sustainable economic growth. Investors are seen chasing safety and the investment demand for gold seems to be on the rise. Gold is up by almost 11.67 per cent since the beginning of the month and is up by almost 2.14 per cent in the last couple of weeks. Brent crude oil is down by 2.51 per cent since the beginning of the month. In the past couple of weeks, Brent crude oil is down by 3.78 per cent.