In the fortnight from 16th to 31st January 2019, major global markets gained U.S.-China trade relations majorly moulded investor sentiment while International Monetary (IMF) revised global growth forecast and Brexit uncertainties, among other factors, impacted market movement.
U.S. markets gained after media reports showed China may cut its trade surplus with the U.S. The Fed kept interest rates unchanged and showed a more dovish stance on future decisions.
European markets too witnessed gains despite lingering uncertainty over Brexit. Factors restricting gains were IMF’s revised global growth outlook and the European Central Bank chief sounding caution over the euro zone growth.
Majority of the Asian markets reflected positive global cues. Bank of Japan also mentioned that it would continue with its ultra-easy monetary policy. This raised confidence in economic growth.
Indian equity couldn’t markets really replicate the global sentiment as investors remained on the sidelines because of a few factors. Most important among these factors were the caution ahead of the Interim Union Budget 2019-20 and the general elections.
The banking sector was a mixed bag as on the one hand the Reserve Bank of India relaxed certain rules, but on the other, mismanagement at a prominent bank and housing Loan Company marred sentiment.
The auto sector declined after an industry leader’s net profit came down for the third quarter. Consumer sector was mixed as not all major earnings pleased investors.
The Indian rupee fell marginally during the period following anxiety over general elections, fiscal deficit and global growth.
Source: MFI Explorer
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