OVERVIEW OF MARKET
Nifty gained ~5% during the month as crude oil prices corrected sharply, currency strengthened and trade tension between US and China abated. The US has postponed its decision to increase import duty on Chinese imports for 90 days as the latter has agreed to certain concessions. Among the sectors, Banks, FMCG and Auto outperformed while Pharma, Metals and IT underperformed the Nifty during the month. FIIs turned net buyers to the tune of about Rs 62bn, while domestic mutual funds bought around Rs 25bn of equity during the month.
The Index of Industrial Production grew by 4.5% in September compared to 4.7% in August. CPI inflation cooled to 3.3% in October against 3.7% in September. WPI inflation inched up to 5.3% in October as against 5.1% in September.
The Bond market rallied during the month of November 2018. The benchmark 10 year G-Sec (7.17% GOI 2028) closed 24bp lower at 7.61% against 7.85% last month.