The equity market continued to be negative in the first half of the month owing to weak global cues as Europe’s sovereign debt and a decline in commodity prices raised concerns over the global economic recovery.
Also See Large/Mid/Small Cap (Graphics)
However, with better-than-expected industrial growth numbers and positive Union Budget announcements, the market picked up momentum in the second half of the month. Investors also shrugged off the lower-than-expected gross domestic product data for December quarter, tracking the Budget.
Both the key market indices, the Sensex on the Bombay Stock Exchange (BSE) and the National Stock Exchange’s Nifty, ended the month with marginal gains of 0.5% and 0.8%, respectively. Small- and mid-cap stocks underperformed their large-cap peers during the month.
Among sectoral indices, the BSE Bankex index gained 2.5% after the Budget proposed to provide Rs16,500 crore for recapitalization of state-run banks. The BSE Auto index grew by 3.6% due to strong auto sales numbers released during the month and the key positives derived from the Budget.
The BSE Capital Goods index and the BSE IT index surged by 5.5% and 5.3%, respectively, and were the top gainers. On the other hand, the BSE Realty index was hard hit, falling by 6.9% on the back of expectations of interest rates hardening.
In order to appraise funds’ long-term performance, they have been ranked based on their one-year Morningstar risk-adjusted return for this review.
Graphics by Yogesh Kumar/Mint