In the fortnight from 1st to 15th February 2019, Major global markets gained. U.S.-China trade relations once again dominated investor sentiment. This time the developments were more towards the positive side.
- International Market
U.S. markets were buoyed by positive economic data and clearing of differences between the U.S. Federal Reserve (Fed) and the President. Another imminent Government shutdown also seemed to be diverted.
European peers too benefitted from U.S.-China trade talks. Political uncertainty in Spain and the Brexit conundrum, however, restricted market gains.
Asian markets largely reflected gains of global peers. Investors also took positive cues from data showing Japan's economy returned to growth in the fourth quarter of 2018.
- Indian Market
Indian equity markets could not replicate the global sentiment and lost in the period. Rise in crude oil prices and a weaker rupee caused discomfort to investors as this combination does not augur well for the inflation.
The banking sector lost in the period with the non-performing assets issue once again came to the fore. Oil and gas sector too saw losses as rising crude oil prices made investors cautious of the inflation outlook.
The information and technology sector gained on upbeat earnings of an industry leader. Weakness in rupee also aided the sector. The auto sector had to settle with losses as the outlook of sales is being seen to be a little gloomy and an industry major posted record loss.
The rupee weakened against the greenback during the period. Investors worried that fiscal slippage could lead to foreign fund outflow.
Source: MFI Explorer
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