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CONTENTS

GLOBAL MARKETS

* Indian market among the leaders in Aug’22, continues to outperform

* India stands out, outperforming global markets YTD

MARKETS

*  Top gainers among global cyclicals; Technology and Healthcare were the weakest in Aug’22

*  Among Nifty constituents, nine closed lower in Aug’22. Around 28 constituents outperformed the benchmark

* A majority of BSE-200 constituents (81%) ended higher in Aug’22

FLOWS AND VOLUMES

* FII inflows at the highest since Jan’21, DIIs turn sellers after 17 months of buying

* Average daily cash volumes rose 28% MoM to INR636b in Aug’22. However, it is still 28% lower from its Oct’21 high

* Monthly institutional cash trading volumes rose 12% MoM to INR5.9t

MACROS

* Indian bond yields at 7.2%. The spread between Indian and US bond yields stood at 4% – the lowest since Feb’17

* On the currency front, the INR declined by 0.25% MoM v/s the USD

* India’s forex reserves declined by USD78b from its Oct’21 peak to USD564b

COMMODITY PRICES

* Commodity inflation cools off from its recent highs, but remains volatile

* Crude Oil prices trade significantly lower from its Mar’22 high

* HRC prices fall 25% from its Apr’22 high

* TMT prices fall 22% from its Apr’22 high

VALUATIONS

* Nifty 12-month forward P/E, at 19.6x, is at a 6% premium to its LPA of 18.5x

*  The 12-month trailing P/E for the Nifty stood at 22.8x, 14% higher than its LPA

* India’s market capitalization-to-GDP ratio is currently at 107% (of FY23E GDP), above its long-term average of ~81%

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