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Scripbox Market Commentary – April 2019

performance

Equity markets in April 2019:

Debt markets in April 2019:

Factor affecting markets:

  1. Elections: With the central elections currently under way, many investors are waiting on the side lines before committing incremental investments. Based on historical evidence, markets tends to factor in such impact well before the final news.
  2. Debt markets: The banking industry and debt markets continue to see the impact of NPAs. Concerns remain over IL&FS, DHFL, Zee, etc, with Jet Airways also, leading to additional concern. On the bright side, it is heartening to note that there are asset sales and settlements also happening at a rapid pace. GAIL’s acquisition of IL&FS wind portfolio, Essel Propack sale to Blackstone, etc are signs of a maturing financial system.
  3. Rupee: After a strengthening from Oct-2018 till Mar-2019, the Rupee has seen some weakness over the last few weeks, partly attributable to the strengthening oil price.

Summary:

After a strong March-2019, equity markets saw a muted performance in April-2019. Based on the outcome of the elections and clarity in terms of policy, one should get better clarity on the direction of the markets.

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