OVERVIEW OF MARKET
During the month markets corrected ~4% amid concerns of global trade war and political uncertainties. However, Equity markets delivered 10% growth for the full year FY18. On the global front, US imposed tariffs on $60bn worth of Chinese imports while China has retaliated with tariffs to the tune of $3bn against the US. In addition to the above, import tariffs of 25% on steel and 10% on aluminum were imposed by the US to protect local producers. Crude prices increased ~5% at $69.3 and was higher by ~31% in FY18 clearly reflecting the production cuts undertaken by OPEC countries during the year. Further, FMCG, Auto and Capital Goods sectors’ outperformed while Metals, Pharma and Oil & Gas underperformed the Nifty for the month. FIIs bought approximately Rs 12,272 cr, while domestic mutual funds bought around Rs 4,745 cr of equity during the month.
The Index of Industrial Production was reported at 7.5% in January compared to 7.1% in December. CPI inflation cooled to 4.4% in February against 5.1% in January. WPI inflation came in at 2.5% in February from 2.8% in January.
The Bond market rallied during the month of March 2018. The benchmark 10 year G-Sec (7.17% GOI 2028) closed at 33bp lower at 7.40% against 7.73% last month.