In the fortnight from 15th to 31st October 2018, major global markets lost ground. Disappointing corporate earnings and rising geopolitical tensions were the main reasons behind the fall.
U.S. markets moved down following disappointing quarterly results of some major companies. Worries over slowing global economic growth and rising geopolitical tensions also weighed on the sentiment.
European markets were burdened by weakness in the U.S. markets and discouraging earnings of global companies. Investors remained concerned over a probable hard Brexit and rejection of the Italian budget by the European Commission.
Asian markets were no different and fell in the period. Concerns over foreign fund outflow as U.S. Federal Reserve (Fed) seemed inclined to raise interest rates at a faster pace pulled markets down.
Indian equity markets closed in the red during the period. Liquidity crisis as a leading company defaulted on debt payments hit the non- banking financial companies (NBFCs).
The banking and financial services sector was mixed as hopes of reduction in non-performing assets in the Indian banking sector boosted sentiment, but at the same time persisting concerns of a liquidity crunch made investors anxious.
The oil & gas sector remained was weak during the period as oil marketing companies had to bear a subsidy after the government asked them to reduce prices.
The Indian rupee fell against the greenback following losses in the domestic equity market and concerns of further interest rate hikes by the U.S. Fed.
Source: MFI Explorer
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