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
Most major equity markets globally faced a steep correction in the month of October. While the S&P500 and the Sensex outperformed their developed and emerging market peers, they still recorded a correction of 5-7 per cent in the month.
Indian bond yields spiked sharply in early October to roughly 8.20 but then fell over the course of the month to 7.82. The concerns over defaults on the systemically important IL&FS initially created an overhang on the market. This was amplified by concerns over oil prices spiking, the FED raising interest rates and the currency depreciating sharply. Post the MPC meet and post the government taking steps to change the board of IL&FS, there seems to be some calming of sentiment in the market.
Gold moved up in the month and closed above the 1200 dollars per ounce. If the commodity moves strongly away from the 1200-1400 range, it would give a better indication of the long term trend.
Oil corrected sharply in October. From a value of 86, it fell to to just over 74 dollars per barrel at the end of the month. Because of our large dependance on oil imports, it is important to keep an eye on this figure as it can have a destabilising effect on our macros.
The Rupee seemed to stabilise against most major currencies in October.
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.