Overall, a good month for domestic equities. Nifty50 up 2.9%, Mid and small caps outperformed delivered around 6%
Best performing sectors: Real Estate Developers – 33% Absolute! Followed by Consumer durables and Power delivering around 10%
Worse performing sectors: Metals and Pharma
Amongst the defensive sectors: FMCG, Pharma and IT underperformed, consumer durables outperformed
Auto, PSUs: After 3 months of underperformance, both outperformed. PSU are amongst the best performing sector this month
Financials: continues to underperform Nifty50 for the 5th month in a row
GLOBAL MARKETS
SUMMARY:
Equity:
Overall it has been a weak month for global equities. Many markets delivered negative returns
US: The worst performing market this month after FED stated that tapering would be announced in the November meeting and would continue till July 2022. Nasdaq (-5.7%) underperformed. Smallcaps (-2.9%) outperformed largecaps (-4.7%)
Japan: Amongst the best performing market this month (+5.5%). The quick exit of unpopular Prime Minister Suga has been followed by foreign buying interest in Japanese equities
Russia: The net energy exporter (+4.7%) outperformed as power prices rose to highs due to supply constraints
Brazil: Weakest equity market (-6.6%) – Major negatives include political turmoil, above target inflation led rate hikes and disappointing Q2 growth numbers
India: Continued to outperform (+2.9%) as IPOs return and vaccination pick up continued (on track to deliver at least 1 dose to 70% of its population by November)
Hong Kong & Korea: Ended sharply lower as market jitters from China spilled out
Currencies:
Broadly, both Developed and Emerging market currencies fell versus the US Dollar as FED proceeds towards tapering – a clear risk off signal
