Equity Market Overview

August - September 2012

Markets resilient; aided by FII flows

In India, markets moved in a narrow band for most part of the month. While global markets came under pressure on account of Eurozone concerns, Indian equities remained relatively resilient as FII flows were robust for the month
For the month, the Banking, FMCG and Pharmaceuticals sector were outperformers
The policy gridlock continues, belying hopes of strong reforms action especially after the PM took over the finance portfolio
Foreign investors remained net buyers while MFs continued to remain net sellers
FIIs bought stocks worth around Rs.112bn in the month of July in the cash segment, despite several ongoing concerns over weak monsoon, slowing economic growth and a high interest rate regime

Global markets remained range bound in anticipation of more stimulus measures

US markets managed to close at higher levels for the month, with Dow crossing above 13,000, on optimism that the Federal Reserve and the ECB may provide further stimulus to prop up the global economy
US markets had been reeling under pressure due to weak economic data-points on jobs, retail sales and manufacturing output

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