INDIAN MARKETS

EXECUTIVE SUMMARY:

  • Large caps underperformed mid and small caps. Within large caps, Nifty next 50 outperformed Nifty 50 and also, Nifty 500.
  • All defensive sectors like IT, Pharma, Consumer – outperformed.
  • Best performing sectors – IT, Consumer Durables, IPOs
  • All other high beta sectors underperformed. Metals, Financials, Oil & Gas, Power delivered negative returns
  • All 3 sub-segments within commodities delivered negative returns, however, the broad Commodities’ Index delivered marginal positive returns due to outperformance in chemical stocks. 2 back-to-back months of underperformance for metals. 

WORLD MARKETS

Executive Summary:

  • Equity:
    • Overall a flattish month for global equities. No clear trend between Emerging Markets versus Developed Markets’ performance in June 2021
    • Outperforming markets – South Korea, Taiwan, Russia. Underperforming markets – Singapore, Mexico, South Africa, China
    • US: Nasdaq has been the best performer this month. Smallcaps underperformed large caps.
    • Russia: Continued rally in Brent Oil has contributed to the outperformance of this energy heavy index
    • South Korea & Taiwan: Digitalization and continued semiconductor demand are positives
    • South Africa: Underperformed – the country imposed strict lockdown measures given the probable onset of 3rd wave
    • China: Continued underperformance given regulatory actions and profit-booking
  • Currencies:
    • USD appreciated versus most currencies this month as FED commented on improving growth and inflation expectations and likely rate hikes in 2023.
    • Brazil – Currency has been appreciating since the central bank began a series of rate hikes (3 hikes this year so far – rate up from 2% to 4.25%; inflation had moved to 8.2% well above the goal of 3.75%)

Leave a Reply