After 5 months of continued high volatility, March was a relatively better month for domestic equities. Most indices and sectors delivered positive returns.
Broad Market Indices: Midcaps (+4.8%) and Smallcaps (+6.3%) outperformed largecaps. Nifty Next 50 (+3.0%) underperformed.
Best Performing: IT (+8.7%) and Oil & Gas (+8.2%).
Most impacted: Autos (-2.3%) and Consumer Durables (-1.9%).
Pharma (+4.0%) performed in line with the market, however continues to be a poor performer on a 3 & 6 month basis.
FMCG (+2.5%) continues to underperform and is amongst the worst performers across different trailing periods.
IPOs (worst performer in the last 6 months) have bounced back and outperformed this month.
Commodities as a basket outperformed broader indices again. All 3 sub-segments – metals, oil & gas and power outperformed.
GLOBAL MARKETS
SUMMARY:
Equity:
Overall it has been a relatively better month for global equities. Many markets delivered positive returns this month.
Broadly, last month’s trend of commodity exporting countries outperforming importers has continued. Commodity rich developed economies like Canada, Australia and emerging economies like Mexico, Brazil are best performing equity markets this month.
US: Outperformed global equities this month. Nasdaq best performer. Largecaps outperformed smallcaps.
China: Worst performer as covid cases multiplied and lockdowns are back in place impacting growth projections. Taiwan, Hong Kong also underperformed.
India: Despite very strong FII outflows and moderating retail participation, equities outperformed.
Most trends of last month continued as many currencies weakened versus the USD.
Developed commodity currencies (CAD, NZD, AUD) and even commodity rich Latin Americans significantly outperformed versus the USD this month too.
Russian Ruble: Has shown a solid rebound after it lost significant value against USD following sweeping sanctions last month and has recovered most of the lost value.
