OVERVIEW OF MARKET
Nifty was higher by 1.5% during the month as the NDA received a clear mandate from the electorate. Even as crude prices declined 11%, global markets remained weak during the month as US and China are unable to resolve their trade dispute. Among the sectors, Banks and Infra outperformed while Pharma, Metals and IT underperformed the Nifty during the month. FIIs were net buyers to the tune of about Rs 88bn, while domestic mutual funds bought Rs 50bn of equity during the month.
The Index of Industrial Production reported a degrowth of 0.1% in March compared to a growth of 0.1% in February. CPI inflation remained stable at 2.9% in April while WPI inflation also followed similar trend.
The Bond market rallied during the month of May 2019. The 10 year benchmark G-Sec (7.26% GOI 2029) closed 38 bps lower at 7.03% against 7.41% last month