Markets Continue To Swing High And Low

While various sectoral indices inched upwards, news about resurgence in virus cases and ensuing lockdowns caused global disruptions

Investors wrapped up celebrating the festival of Diwali during which many traders remained active on account of the fact that trading is considered auspicious during the festive season. Globally, markets remained volatile as a sudden surge in corona virus cases was seen with many countries again implementing lockdown restrictions. Since restrictions were also imposed in certain cities in India, there is confusion and subsequent fear about whether the country will again implement strict lockdown restrictions in areas with increasing number of cases, thus causing business disruptions. 

Moreover, the markets continued to enjoy the positive news related to the virus vaccine. The confidence boosted by vaccine breakthroughs and the US’ election results led FTSE 100 to have November 2020 as the best month in at least three decades with investors continuing their buying spree of undervalued UK assets. Concerns over whether the Brexit deal will attract more international investors and profitbooking led to volatility in FTSE 100. During the fortnight, FTSE 100 was up by a mere 0.04 per cent; DAX gained 1.54 per cent; and CAC 40 rose by 2.10 per cent. In the American markets, NASDAQ jumped by 2.58 per cent, S&P 500 gained 0.80 per cent whereas DJIA rose by 0.43 per cent.

On global cues, Asian indices such as Nikkei, Hang Seng and Shanghai index surged by 3.56 per cent, 1.82 per cent and 2.05 per cent, respectively. In the domestic markets the Sensex spiralled upwards by 1.03 per cent while Nifty gained 0.74 per cent in the last few weeks. For the same period of time, amongst sectoral indices, the Metal index surged by 5.77 per cent followed by Auto index and Power index gaining 5.73 per cent and 5.65 per cent, respectively. The Realty index was up by 5.25 per cent while Bankex gained 1.26 per cent during the fortnight. FMCG index and Healthcare index gained 1.62 per cent and 2.66 per cent, respectively. SmallCap index jumped 6.07 per cent while MidCap index gained 4.75 per cent. Trading data shows that FIIs were net buyers to the tune of Rs 27,919.81 crore whereas DIIs were net sellers to the tune of Rs 23,049.2 crore. During the fortnight, WTI crude prices surged by 8.95 per cent to USD 45.04 from USD 41.34 while Brent crude gained 8.48 per cent to USD 47.54 from USD 43.82. Gold prices during the fortnight tumbled by around 4.81 per cent to Rs 50,360 per 10 grams of 24 carat gold.