We look at returns of various asset classes such as equity, debt, gold, crude oil and the Indian rupee in our latest monthly market summary.
We use data for these charts from Investing.com
The US and Indian markets corrected sharply in March. While most markets continue to give double digit returns over the last year, the returns have definitely moderated. The broader emerging market basket though still continues to give good returns. On a longer term basis, equity market returns are now in the single digit range.
After moving up sharply over the previous few months, the 10 year G-sec corrected in March. This is a result of the government announcing a reduced borrowing calendar, in a move now being called the “Garg Put”. While it is good to see this much overdue correction, there are still concerns on the inflation front due to rising commodity prices and because the government is now giving a fiscal stimulus to the rural economy via MSP hikes.
Gold continues to trade in the 1200-1400 dollars per ounce range. A strong move of gold outside of this range would give a better indication of its long term trend.
Oil moved up sharply in March to nearly 70 dollars a barrel. It appears that it is now trading in the 60-70 dollars a barrel range and a breakout on either side would give a better indication of the longer term trend. Because of our large dependance on oil imports, it is important to keep an eye on this figure.
The Rupee was stable against the Dollar and the Yen in March but depreciated against the Pound and the Euro.
Rishad is the founder of Kairos Capital. He started his career with Standard Chartered Wealth Management and has extensive experience in markets, particularly in terms of mutual funds and stocks.