Aditya Birla Sun Life Mutual Fund

Equity Update for the Fortnight - July - II

Aug 19, 2019
4 mins | Views 7078

In the fortnight ended July 31, 2019, major markets of the world remained weak. U.S.-China trade tensions and U.S. Federal interest rate stance were the main triggers.

International Market

U.S. markets went down with the Federal Reserve throwing hints that there may not be any more rate cuts in the year after reducing rates by 25 basis points in its latest policy meet.

European peers were weak too on trade war worries. The European Central Bank (ECB) maintaining status quo in interest rates dint go down well with the markets.

Asian markets followed suit and fell in the period. Over and above the global factors, Japan-South Korea trade tensions and North Korea conducting arms tests hit sentiment.

Indian Market

Indian equity markets closed on a weak note during the period as there were concerns around the budget proposals of the finance minister.

Most of the sectors lost in the fortnight, reflecting weakness in the domestic equity market. The banking and financial sector declined as the earnings season saw a bunch of banks struggle with non-performing assets.

A weak monsoon played on the consumer sector. Quarterly earnings of auto companies were subdued because of the decline in sales.

The rupee weakened against the greenback following losses in the domestic equity market and concerns over foreign fund outflow from the domestic economy.

Source: MFI Explorer

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

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