In the fortnight ended 28th June 2019, major markets around the globe being were stirred by expectations from central banks and their actions thereafter.

International Market

U.S. markets were focused around what the U.S. Federal Bank (Fed) would decide in its policy meet. Investors had factored in a status quo and looked forward to the statement.

European markets gained during the period as investor sentiment buoyed by hopes of additional stimulus measures by the European Central Bank (ECB).

Asian peers followed the global trend and gained in the period. Investors welcomed hints thrown by the Chinese central bank that it might ease monetary policy in the second half of the year. The Iran-U.S. tiff restricted the gains.

Indian Market

Indian equity markets closed on a weak note during the period. Concerns over monsoon deficit following reports showing below-average rainfall during the last four weeks deepened the losses.

The banking and financial sector was mixed as investors looked forward to the budget for positive cues and at the same time. Reserve Bank of India (RBI) warned of the bad effects of the liquidity crunch in the non-banking financial companies.

IT and auto sectors were weak in the period. IT sector was bogged by the U.S. removing India from the preferential mail list, the consumer sector too was mixed on budget hopes.

Rupee strengthened against the U.S. dollar because of U.S. dovish stance on future rate hikes.

Source: ICRA Online.

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