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Equity Markets:

In September 2024, Indian equity markets saw a positive trend, with the BSE Sensex and Nifty 50 rising by 2.35% and 2.3% respectively, marking three consecutive months of gains.

• The broader market also performed well, as the Nifty Small Cap 250 increased by 1.32% and the Nifty Mid Cap 150 rose by 1.76% during the same month.

• The top-performing sectors in the Nifty for September 2024 included Auto, Realty, Oil & Gas, and Energy.

• Foreign institutional investors (FIIs) made net equity purchases of Rs.57,724 crores, while domestic institutional investors (DIIs) recorded net purchases of Rs.32,000 crores.

Debt Markets:

The 10-year government bond yield decreased to 6.75% at the end of September 2024, down from 6.86% in August, as the market anticipates potential rate cuts by the RBI.

• Indian inflation rose to 5.49% in September 2024, up from 3.56%, marking a nine-month high and surpassing the RBI’s target rate of 4% for the first time since July.

• Although inflation remained within the RBI's target range of 2%-6%, it slightly exceeded the forecasted range of 3.6-5.4%.

• The increase in vegetable prices significantly contributed to the spike in inflation during September.

Mutual Funds:

The inflows into the equity mutual funds saw a 10% dip in September to Rs.34,419.26 crore from Rs.38,239 in August.

• Debt mutual funds saw an outflow of Rs.1.13 lakh crore in September 2024, on a MoM basis against an inflow of Rs.45,169 Crore in August 2024.

• In September, SIP (Systematic Investment Plan) contribution in mutual funds stood at an all-time high at Rs.24,508.73 crores as against Rs.23,547.34 crores in August 2024.

• The total Assets Under Management (AUM) of mutual funds rose by 1% and stood at Rs.67.09 lakh crore in September against Rs.66.43 lakh crore in August.

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