OVERVIEW OF MARKET
Nifty fell by 5.7% during the month due to FII outflows on back of proposal of higher taxes on non-corporate FPI’s, subdued corporate earnings for the quarter and lowering of India growth outlook by IMF. Among the sectors, Pharma, FMCG and IT outperformed while Auto, Metals and Energy underperformed the Nifty during the month. FIIs turned net sellers to the tune of about Rs 114bn, while domestic mutual funds bought Rs 104bn of equity during the month.
The Index of Industrial Production reported a growth of 3.1% in May compared to a growth of 4.3% in April. CPI inflation broadly remained stable at 3.2% in June. WPI inflation moderated to 2.0% in June as against 2.5% in May.
The Bond market rallied during the month of July 2019. The 10 year benchmark G-Sec (7.26% GOI 2029) closed 47 bps lower at 6.41% against 6.88% last month.