OVERVIEW OF MARKET
After a sharp surge of 16% in this calender year, NIFTY fell 1% during June on concerns over GST preparedness of companies and government, RBI’s order for banks to make sizeable provisioning on specified accounts referred to National Company Law Tribunal and large farm loan waiver by the key agrarian states. Pharma, FMCG, and Metals sectors’ outperformed while Oil& Gas, IT and Auto underperformed the Nifty. FIIs were buyers for more than Rs 3,617 cr while domestic institutional buyers bought more than Rs 7,853 cr of equity during the month
The new Index of Industrial Production (IIP) series recorded a growth of 3.1% in April compared to 3.8% in March. CPI inflation slipped to a record low of about 2.2% in May compared to c.3% in April. Newly released WPI inflation growth fell to 2.2% in May from 3.85% in April.
The Bond market rallied during the month of June 2017. The benchmark 10 year G-Sec (6.79% GOI 2027) closed 15bp lower at 6.51% against 6.66% last month.