In fortnight from 15th to 31st August 2018, Major markets of the globe gained on the back of positive economic data. Trade row between the U.S. and China continued to burden the markets though the former seemed close to sorting out differences with Canada.
U.S. markets were boosted by U.S.-Mexico trade talks and the U.S. Federal (Fed) changed stance on interest rates. Upbeat economic data too supported sentiment.
Europe too saw positive economic data and Greece released its final bailout programme. U.K. was an exception and declined because of concerns that its exit from the European Union (EU) could lead to a financial crisis in the area.
Positive economic data emanating from China and Japan kept Asian markets upbeat. Gains were restricted by the worsening trade dispute between U.S. and China. News suggested that the U.S. President could put all the imports from China under a higher tariff net soon.
Indian equity markets saw new highs in the period as certain corporates gained handsomely. U.S. Federal Reserve hinting that it would increase rates gradually but lack of clarity regarding the pace of rate hike also buoyed investor sentiment.
The auto & auto ancillaries sector ended on a positive note. In eight out of the last nine years, the Nifty Auto Index has returned gains in Sep and market analysts expect the same for September 2018.
The oil & gas sector and auto & auto ancillaries sector moved up as demand is expected to grow at a good pace in both the industries.
A declining rupee came as a big boost for the Information Technology (IT) sector as the industry is export-oriented. Consumer discretionary gained during the fortnight on growing demand for automobiles.
Rupee saw record lows in the fortnight over rising trade tensions, the Turkish financial crises and the slump in Argentinean peso.
Source: MFI Explorer
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