OVERVIEW OF MARKET
During the month, equity markets declined due to heightened geopolitical tensions between North Korea and United States and are still recovering from its effects. On the domestic front, as part of efforts to curb black money, SEBI imposed trading restrictions on 331 suspected shell companies. Oil & Gas, Metals and FMCG sectors’ outperformed while Pharma, IT and Capital Goods underperformed the Nifty. FIIs were sellers for approximately Rs 12,770 cr which was fully absorbed by domestic mututal funds who bought around Rs 17,220 cr of equity during the month.
GDP grew 5.7% for Q1FY18 against 6.1% in the previous quarter, its slowest pace in more than 3 years. The Index of Industrial Production came in at -0.1% in June compared to 2.8% in May. CPI inflation accelerated to 2.4% in July compared to 1.5% in June. WPI inflation inched sharply higher to 1.9% in July from 0.9% in June.
The Bond market yields rose during the month of August 2017. The benchmark 10 year G-Sec (6.79% GOI 2027) closed 6bp higher at 6.53% against 6.47% last month.