Another very volatile month for domestic equities. Like last month, this month too started positively, however the gains were eroded in the second half. Nifty50 has now corrected 9.8% from its all-time high of 18,604.
All broad market indices, delivered absolute negative returns.
Nifty50 underperformed all indices. Smallcaps and Nifty Next 50 outperformed.
All 3 defensive segments have relatively outperformed. IT, Pharma are amongst the few sectors delivering positive returns this month.
Financials and Metals are the worst performing sectors.
IPOs and Power outperformed. There have been a series of big ipos this month including Nykaa, Policybazaar and Paytm.
GLOBAL MARKETS
SUMMARY:
Equity:
A very volatile month for global equities. Many markets delivered absolute negative returns. No clear trend between developed and emerging market performance.
US: Continues to be amongst the better performing markets. Nasdaq outperformed and continued to stay in green. Small caps underperformed significantly.
India: Underperformed global peers for second month in a row – Continued to witness big FII outflows in the secondary markets.
South Africa: Despite Omicron and International travel bans is the best performing equity market. Point to note, they haven’t imposed any movement restrictions locally so far.
Honk Kong: Index suffered massively given disappointing earnings and technology sector related concerns along with the new covid variant.
Russia: Equities take hit as oil tumbles.
Currencies: Broadly, both Developed and Emerging market currencies fell versus the US Dollar as FED begins tapering. CAD, NZD, AUD have fallen significantly – clear risk off signals (for second month in a row)
