Motilal Oswal Global Market Snapshot – Aug 2023

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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 August 2023

Here’s a small preview of the report –

Indian Market Update

1. Nifty 50 dropped 2.5% in August due to a slowdown in FPI investment and rising bond yields. However, mid and small caps stole the spotlight by surging 3.9% and 5%, respectively.
2. Consumer durables and IT sector led the charge, rising ~4.7 % and 4%, respectively. On the flip side, Energy lagged with a -4.2% decline.
3. Factor strategies dipped after a stupendous performance in July. The return of the Low volatility factor dipped slightly more than the other three factors at -1.6%, followed by Enhanced Value at -1.3%.
4. The financial services sector dragged the overall performance of the Nifty 500, contributing -1.2% to the overall return. IT sector provided support by contributing a positive 0.6% to Nifty 500.

Global Market Update

1. Both Emerging and Developed markets fell in cohesion, with South Africa falling -12.3%, followed by Brazil and China at -9% each.
2. Within the US market, the NASDAQ 100 and S&P 500 indices fell -1.6% & -1.7%, respectively. IT sector contributed -0.39% to the overall fall of -1.7% of S&P 500.
3. On the commodities side, the oil prices recorded yet another positive month and rose 2.2%, but on a year-on-year basis, oil prices are down -8%, providing respite to consumers. Silver & gold prices diverged a bit as silver prices remained flat for the month while gold prices fell -1.4%.
4. Crypto currency’s downward trend continued, as Bitcoin & Ethereum prices crashed a massive -11% each in August.

Economic Indicators

1. India’s retail Inflation surged to a 15-month high of 7.44% in July on account of a spike in food prices; however, the seasonal impact on food prices is expected to withdraw in coming months.
2. India’s composite PMI continues to stay in expansion territory at 60.9, with the services PMI and manufacturing PMI at 60.1 and 58.6, respectively. (reading >50 indicates expansion)
3. In the US, the inflation rate has fallen to a third from its peak of 9% in June 2022, now standing at 3.2% in July 2023.

“It is not prudent to attempt to switch and swap asset classes based on short-term market predictions.” – Richard A. Ferri