Large caps underperformed mid and small caps. Within large caps, Nifty next 50 outperformed
No clear performance trend between defensive and high beta sectors
Best performing sectors: Real estate developers, Metals, IPOs
Amongst the defensive sectors: Pharma and IT outperformed, FMCG underperformed
Financials: continues to underperform and is amongst the worst performing sectors in the last 6 months
Capital Goods: continues to steadily outperform broad indices month on month
Auto: underperformed significantly this month
Within commodities: Apart from metals, all other sub-segments underperformed significantly
GLOBAL MARKETS
SUMMARY:
Equity:
Developed Markets (Ex-Asia) and South Africa outperformed. Developed Asia, Brazil and China underperformed.
US: Nasdaq has been amongst the best performer this month again. Small caps delivered negative returns and continued to underperform large caps
China, HongKong, Taiwan: Regulatory overhaul by the Chinese Government has caused large FII outflows in the last month. Most impacted sectors – Technology, property and education. Separately, fresh restrictions are being imposed in China as delta variant cases rise.
Singapore: Has outperformed its Asian peers as it leads in vaccination progress and covid related curbs begin to ease further.
South Africa: After falling last month, has recovered now and is in line with other emerging markets supported by easing monetary policy (given rise in covid cases in June) and rising exports + additional benefits from falling currency.
Currencies: Like last month, safe haven USD, YEN appreciated versus most currencies this month as money moved out of Chinese assets given big regulatory changes.
