Equity Update For The Fortnight - November 2018 - I

Dec 01, 2018

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In the fortnight from 1st to 15th November 2018, most of the major markets gained as political and economic developments played to the interest of the investors.

International Market
U.S. markets gained as midterm elections didn’t throw any surprises, but the upward trajectory was limited by U.S. Federal aggressive stand on future rate hikes and concerns on slowing global economic growth rate.

European markets bucked the general trend and declined in the period on the back of Brexit. U.K. Prime Minister pledged to see the process of Britain leaving the European Union (EU) through but resignations of highly-placed officials over the matter made investors jittery about the PM’s ability to do so.

Asian markets strengthened on China’s efforts at supporting its economy in the face of trade tensions with U.S. China’s regulators said they would do everything possible to spur the private sector and support the economy.
Indian Market
Domestic market got support from positive economic data including the consumer price index-based inflation. Weakness in global crude oil prices lent some support to the oil marketing companies and lowered concerns of higher fiscal deficit and inflationary pressure too.

Banking and financial services witnessed buying interest during the period backed by possibility of Reserve Bank of India (RBI) liberalising norms for weak banks in order to boost lending in the economy.

Consumer sector ended on a positive note in the period, following strong earnings by Fast-Moving Consumer Goods (FMCG) and consumer discretionary majors.

The Auto sector witnessed growth during the period under review as passenger car sales rose marginally in Oct 2018 after declining for three straight months.

The rupee gained ground on decline in oil prices, gain in domestic equity market and seemingly easing trade tensions between China and U.S.