Most indices and sectors delivered negative returns in September after 2 months of rally
Broad Market Indices: Nifty (-3.7%) underperformed midcap (-1.7%) and small cap indices (-0.8%).
Performance deviation between sectors increased again this month.
FMCG and Pharma were top performing sectors this month (up 1.4%). Pharma sector showed some out-performance after months of under-performance
IT (-4.9%) continued to underperform other sectors and broader indices and is worst performer on 1Y basis along with IPO segment. Power sector which was out-performer till last month, was the worst performer this month (-9.2%)
Within Commodities: All segments under-performed broader indices
GLOBAL MARKETS
SUMMARY:
Equity:
Most global markets delivered negative returns again in Sept. The overall trend in international equity markets has continues to be weaker compared to India (-15 to -20% compared to flattish scenario in India)
Emerging markets like Mexico and Brazil out-performed global peers, with flat to marginally positive returns. Brazilian markets reacted positively to the outcome of the elections
US: Markets continued to be weak plagued by fears about a recession and the Federal Reserve’s struggles to tame high inflation. NASDAQ again was one of the worst performers with fall of 10%
Eurozone: Interest rate rises, soaring energy prices and political turmoil in some parts of the world have impacted Equity markets. Euro zone business activity fell further than expected last month, increasing the likelihood of a recession in the 19-member common currency bloc. S&P Global’s final euro zone composite PMI, seen as a reliable gauge of economic health, dropped to a 20-month low of 48.1 in September from 48.9 in August
Russia: In early September, Ukrainian President leveraged recent aid packages received from the U.S. and EU countries to launch the first major offensive strike. The strike led to a reported collapse of the Russian north eastern front in the Kharkiv region. In the days that followed the Russian retreat and ensuing draft, the Stock market has fallen even further, past its previous February low
China, Hong Kong : Beijing’s Covid Zero pursuit, regulatory crackdowns and tensions with the West have led to correction in Equity markets
Currencies:
Most currencies were stable (appreciated marginally) during the last month versus USD
Indian Rupee was mostly flat with support of RBI interventions
