In the fortnight from 15th to 28th September 2018, major global markets gained with ample support from positive economic data.
- International Market
U.S. markets gained as data including economic growth, consumer confidence, durable goods orders, new residential construction showed healthy improvement.
On the European front, German consumer confidence data and wholesale price inflation; U.K. retail sales; and eurozone inflation increased among other economic parameters and gave markets a fillip. Brexit and trade war concerns were a drag on the bourses.
Asian markets got support amid expectations that Chinese government would take stimulus measures to support the growth trajectory of the country to combat the trade row
- Indian Market
Indian equity markets closed in the red during the period. Liquidity concerns kept investors wary. Investor sentiment remained subdued because of the rating downgrade of a major domestic infrastructure development and finance company.
The banking and financial services sector hogged the limelight during the period under review First it was the news of three public sector merger, then confusion over appointment at a private lender and finally the debt repayment default by a major finance and infrastructure company.
The Information Technology (IT) sector was relatively less affected by the broader markets as the fall in rupee aided the export-driven business.
The consumer sector continued to move down during the period, as ongoing rise in fuel prices dampened sentiment and hurt discretionary spending to a large extent.
The rupee weakened against the greenback following losses in the domestic equity market due to increase in global crude oil prices and escalating trade tensions between U.S. and China.
Source: MFI Explorer
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