The Motilal Oswal Global Market Snapshot provides a quick glance at index performances and economy updates from the Indian & global markets.
Click here to view the detailed report for October 2023
Indian Market Update
- In October 2023, Indian stock markets exhibited a negative trend, highlighted by a 3% fall in the Nifty 50 index, with the Midcap 150 index leading the decline at 4%.
- With the exception of Realty, all sectors reported negative performance. The Metals sector saw the steepest decline, dropping by 6%.
- Factor-based investment strategies, including Momentum, Low Volatility, Quality, and Value, all delivered negative returns for October. Momentum experienced the most significant decline at 4%.
- On the return contribution side, The Financial Services sector remained a key driver of returns for the Nifty 500 index, contributing 0.88% to the overall 2.84% decline in the index during October 2023.
Global Market Update
- In the US, S&P 500 and NASDAQ 100 both experienced a 2% decline in October 2023, with the Healthcare & Consumer Discretionary sector being the largest contributor to the S&P 500’s fall.
- Globally, both emerging and developed markets saw negative performance, with declines of 4% and 3%, respectively. South Korea witnessed the most significant drop at 7%, while Switzerland led the decline in developed markets with a 5% fall.
- Crude oil prices nosedived by 11% during October, due to rising geo-political risks, low demand from the US and mixed Chinese data.
- On the commodities front, precious metals were in the green with gold and silver prices rising by 7% and 1% respectively, amid rising tensions in the middle east. Cryptocurrencies like Bitcoin and Ethereum went soaring at 29% and 9%, respectively.
Economic Indicators
- GST revenue collection in October 2023 stands as the second-highest on record, next only to April 2023. It amounts to ₹1.72 lakh crore, marking a notable 13% year-on-year increase.
- India witnessed its highest unemployment rate in over two years, largely attributed to a surge in joblessness in rural areas. Data from the CMIE reveals that the overall unemployment rate climbed to 10.09%, a significant increase from September’s 7.09%, reaching its highest level since May 2021.
- At the recent FOMC meeting, the Federal Reserve maintained interest rates at 5.50%, showing confidence in the US economy despite high inflation.
- Boosted by expectations of another rate hike, October saw US 10-year Treasury yields approach 16-year highs.
