28 Aug 2017

Doldrums are gone

Emerging from the August doldrums without a material market setback, global equities are still in demand in spite of geopolitical risk being quite high thanks to North Korea. In India, the Nifty has spent some time above the critical 10,000 level before subsiding under pressure from “risk-off” foreign selling. The Nifty eventually retreated 158 points, closing 1.6% lower at 9857 after trading in a range of 4.7%. Average daily trading volumes slipped $4.7bn as FPI selling of $1.4bn in cash equities was more than offset by $1.6bn of buying by domestic institutions. Volatility remained subdued: the India VIX traded between 10 and 16 before closing at 13 for a gain of 3 points. Market breadth was flat overall, with advances equal to declines and Nifty futures traded largely at a premium of about 75 basis points to cash.

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