OVERVIEW OF MARKET
During the month, equity markets touched all time high; the positive bias was led by favourable economic indicators, corporate earnings and recapitalization of PSU banks announced by the government. Crude closed at $61.4 as the prices further rose ~7% during the month. Further, Telecom and Energy sectors’ outperformed while FMCG, Auto and Banking underperformed the Nifty. FIIs were buyers for approximately Rs 1,866 cr, while domestic mutual funds bought around Rs 12,597 cr of equity during the month.
The Index of Industrial Production came in at 4.3% in August compared to 1.5% in July. CPI inflation was flat sequentially at 3.3% in September. WPI inflation cooled to 2.6% in September from 3.2% in August.
The Bond market yields rose during the month of October 2017. The benchmark 10 year G-Sec (6.79% GOI 2027) closed 20bp higher at 6.86% against 6.66% last month.