Aditya Birla Sun Life Mutual Fund

Equity Update for the Fortnight - August 2019 - II

Sep 16, 2019
4 mins | Views 9245

In the fortnight ended August 31st, 2019, major markets gain, even though trading remained volatile.

International Market

U.S. markets gained on U.S. Federal Reserve’s assurance that the bank will do whatever required to spur the economy. Gains were limited on trade concerns as China and the U.S. prepared to impose fresh tariffs on each imports.

European markets moved up as Italy’s political crisis neared an end with the formation of a new government. This soothed investors nervous over developments on the Brexit front.

Asia markets gained too overcoming concerns over the trade war between China and U.S. and Japan and South Korea. However, gains were limited by the violent pro-democracy protests in Hong Kong.

Indian Market

Indian equity markets ended flat during the period. Initially, investors pinned their hopes on a possible stimulus package from the Government. Later, when no signs emerged on this front, sentiment got soured.

Banking sector lost as a major private sector bank found itself stuck with exposure to a multinational power company that declared multi-million-dollar fraud.

Sectors were a mixed bag. The auto sector gained after prolonged weakness in previous fortnights. A pick-up in monsoon supported the consumer discretionary sector. The weakness in rupee strengthened the IT sector in the period.

The rupee weakened against the greenback due to weakness in the Chinese currency amid mounting trade tensions and worries over economic outlook.

Source: MFI Explorer

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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