No End To Volatility
Trading data shows that FIIs were net buyers to the tune of Rs 7,072.67 crore while DIIs were net sellers to the tune of Rs 3,600.09 crore. Gold price fell by 1.65 per cent since the beginning of September to Rs 52,500 for 10 grams of 24 carat gold while the price gained by a mere 0.09 per cent during the fortnight.
During the fortnight domestic as well as global markets remained volatile. The gain in momentum seen in the markets post the pandemic crash resulted in profit booking. Wall Street tumbled in the past few weeks as investors were seen dumping technologyrelated stocks after the rallies. Additionally, fears about delay in fresh stimulus raised concerns over the longer road of recovery for the US economy than what was previously assumed. DJIA fell by 1.28 per cent, S&P 500 was down by 1.52 per cent and NASDAQ declined by 0.64 per cent during the last couple of weeks.
The possibility of another mini lockdown in UK and Europe as a response to the increasing virus cases triggered fear in the economies. While CAC 40 and DAX crashed by 3.65 per cent and 3.28 per cent during the fortnight, FTSE 100 fell by 2.12 per cent during the same period. Asian indices remained mixed as Hang Seng declined by 2.74 per cent while Nikkei and Shanghai indices inched up higher by 0.37 per cent and 0.02 per cent respectively. Domestic indices such as Sensex and Nifty fell by 0.86 per cent and 0.59 per cent respectively, on global cues, cutting their gaining momentum towards the end of the fortnight.
Amongst domestic sectoral indices, healthcare and IT continued to gain, jumping by 5.91 per cent and 7.17 per cent, respectively, in the last few weeks. For the same period of time, Bankex, FMCG and metal indices declined by 5.93 per cent, 3.87 per cent and 4.98 per cent, respectively. The auto index was down by 0.64 per cent whereas indices such as power and realty rose by 0.12 per cent each. In the broader markets, the small-cap index outperformed, gaining by 2.15 per cent as SEBI announced new regulations for multi-cap funds, making it mandatory for multi-cap funds to invest 25 per cent each in large, mid and small-cap stocks. The mid-cap index gained by 0.34 per cent.
Trading data shows that FIIs were net buyers to the tune of Rs 7,072.67 crore while DIIs were net sellers to the tune of Rs 3,600.09 crore. Gold price fell by 1.65 per cent since the beginning of September to Rs 52,500 for 10 grams of 24 carat gold while the price gained by a mere 0.09 per cent during the fortnight. During the last couple of weeks, WTI crude price gained by 7.56 per cent to USD 39.54 for October contracts from USD 36.76 while a sharp fall by 7.53 from USD 42.76 can be seen since the beginning of the month. As for Brent crude prices, there is 5.48 per cent increase to USD 41.96 for November contracts from USD 39.78.
