OVERVIEW OF MARKET
Nifty rose ~6% during the month closing at new life time highs; market direction was largely led by corporate earnings, MSP announcement and easing crude prices. Crude price fell by ~6.5% and closed at $74.3 due to concerns of oversupply. On the domestic front, inflation continued its northward journey alongwith widening trade gap. Among the sectors, Energy and FMCG outperformed while Metals, Pharma and Infra underperformed the Nifty during the month. FIIs turned net buyers to the tune of about Rs 517 cr, while domestic mutual funds bought around Rs 5,460 cr of equity during the month.
The Index of Industrial Production moderated to 3.2% in May compared to 4.8% in April. CPI inflation inched higher to 5.0% in June against 4.9% in May. WPI inflation rose sharply to 5.8% in June as against 4.4% in May.
The Bond market rallied during the month of July 2018. The benchmark 10 year G-Sec (7.17% GOI 2028) closed 13bp lower at 7.77% against 7.90% last month.