OVERVIEW OF MARKET
Nifty gained 1.5% during the month led by in line corporate earnings, Governments efforts to revive stressed sectors and resolution of a large stressed account. Further, RBI, at its latest policy meet, left interest rates unchanged and retained its policy stance as accommodative. Global sentiments eased as a result of positive news flows surrounding US-China trade talks. Among the sectors, BFSI, Metals and Pharma outperformed while Auto, FMCG and IT underperformed the Nifty during the month. FIIs were net buyers to the tune of about Rs 231bn, while domestic mutual funds turned sellers to the tune of Rs 20bn of equity during the month.
On the economy front, 2QFY20 GDP growth slowed to 4.5% compared to 5.0% in 1QFY20. The Index of Industrial Production reported a sharp degrowth of 4.3% in September compared to a degrowth of 1.4% in August. CPI inflation moved up to 4.6% in October against 4.0% in September. WPI inflation was broadly stable at 0.2% in October as against 0.3% in September.
The Bond yields rose marginally during the month of November 2019. The 10 year benchmark G-Sec (6.45% GOI 2029) closed 2 bps higher at 6.47% against 6.45% last month.