IGI Logo

Below the Quote on Weekly market by Mr. Jyoti Prakash, Managing Partner, Equity and PMS, AlphaaMoney

Indian Equities have risen this week, large-caps by 1.4% while Small & midcaps rose by more than 2%.

 Markets had risen in anticipation of GST rate cut. Post announcement of cuts, markets have been flat. Tax cuts would lead to better corporate earnings in coming quarters. Total stimulus by fiscal and monetary authorities (GST, Income Tax and Interest rate cuts) amount to roughly 1% of India’s GDP.

 The yield on India’s G-Sec declined by 11bps this week, at the time of writing. Govt. Bonds across advanced economies too witnessed falling yields.  Globally, yield curves continue to steepen.

 The price of Crude oil has declined by 1.8% this week which is Bond positive.

 Gold’s bull market continues backed by large weekly flows into Gold Funds, $6.2 billion. Weekly gain for Gold is 3.1%.

 Rupee hit a new low on Friday vs. USD. This is in spite of near certainty of rate cut by the FED in September coupled with concerns around FED independence and rising political uncertainties in France.

Above views are of the author and not of the website kindly read disclaimer