Oil prices, tumbling rupee (INR) and political choppiness in Karnataka and other constituencies went for by-polls confined equity markets in a rangebound territory in May 2018.
Resurgence in the Indian equity markets, in Apr-18, marred by a series of uncertainties in the domestic markets and international trades amid increasing geopolitical pull. Results of assembly polls in Karnataka state has aided additional support to the sellers to dump shares for moving back to safe heaven. India’s gross domestic product grew 7.7% in the quarter ended Mar 2018, the government said, making India the fastest growing major economy in the world. Yet, this buoyancy has failed to revive the market sentiment.
UI 44 Ordinaries traded in the negative territory throughout the month while the BSE Sensex 30 and NSE Nifty 50 outperformed marginally. HDFC Bank and HDFC, which are not the UI 44 constituent, significantly rose during the month, pushed the benchmark indices of stock exchanges higher. However, UI 44 Ordinaries, an index which shows sentiment of the Indian market, relatively exhibiting the weakness in the coming weeks.