OVERVIEW OF MARKET
Nifty gained 0.9% during the month led by expectations of efforts by governments to revive economic activity and inflows to emerging markets including India. Further, RBI at its latest policy meet, kept interest rates unchanged with accomodative stance. Global markets remained buoyant as a result of soften trade tension between US-China and easing liquidity by global central banks. Among the sectors Metals, IT and BFSI outperformed while FMCG, Infrastructure and Energy underperformed the Nifty during the month. FIIs were net buyers to the tune of about Rs 61bn, while domestic mutual funds also turned buyers to the tune of Rs 21bn of equity during the month.
The Index of Industrial Production reported a degrowth of 3.8% in October compared to a degrowth of 4.3% in September. CPI inflation moved up to 5.5% in November against 4.6% in October. WPI inflation inched up to 0.6% in November as against 0.2% in October.
The Bond yields rose marginally during the month of December 2019. The 10 year benchmark G-Sec (6.45% GOI 2029) closed 9 bps higher at 6.56% against 6.47% last month.