Investors had reason to cheer in September as domestic equity markets surged. During the month, the BSE Sensex breached the 17,000 point mark and posted a gain of 9.32%. On a year-to-date basis, the Sensex has risen by 77.5%. The BSE Mid-Cap Index (up 7.50%) and the BSE Small-Cap Index (up 8.48%) also closed in positive terrain.
Higher-than-expected advance tax payments by companies were seen as a sign of economic revival. Market sentiment was also aided by encouraging Index for Industrial Production numbers.
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The recent rise in equity markets can in no small measure be attributed to investments made by foreign institutional investors (FIIs). They have been net buyers for seven months in a row now. During the month, FIIs bought equities of around Rs18,344 crore. Conversely, domestic mutual funds were net sellers to the tune of Rs2,334 crore.
From a sectoral perspective, banking stocks fared well on prospects of higher earnings growth; the BSE Bankex rose by 18.11% over the month.
Metal stocks were aided by rising commodity prices; the BSE Metal Index appreciated by 14.49%. Robust sales numbers aided the cause of auto stocks; the BSE Auto Index appreciated by 13.37%.
In order to merit 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