Market Update as on Oct 2020

October 21, 2020

  • The global equity markets have maintained an upward trend since the 2nd half of 2020 despite the heightened geopolitical tensions in the Middle East and South China Sea and the emergence of new regional outbreaks of Covid-19.
  • The Indian equities have rallied on the strong Foreign Institutional Investors (FIIs) and Domestic inflows despite rapid growth of Covid-19 cases.
  • The Nifty 50 rose by 2.8% while the BSE Sensex went up by 2.7% on MoM basis since the 2nd half of 2020. The broader markets outperformed the frontline benchmark indices primarily due to continued participation of the retail and High Networth Individual (HNI) investors. 
  • In August 2020, the FIIs invested Rs. 33,245 Cr. (vs. Rs. 8590 Cr. bought MoM) in Indian equities, while Domestic Institutional Investors (DIIs) off loaded Rs. 6171 Cr. worth of equities (vs. Rs. 7232 Cr. sold MoM) during the month.
  • The markets across the globe, seem to have fully digested the adverse impact of Covid and have turned forward looking after the long term commitment of ultra-accomodative monetary and fiscal policy stance by large economies specially the United States.