Motilal Oswal Global Market Snapshot – Sep 2023

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 September 2023

Here’s a small preview of the report –

Indian Market Update

1. In September 2023, Indian stock markets exhibited a positive trend, highlighted by a 2% increase in the Nifty 50 index, with midcap indices taking the lead, surging by 3%.
2. All sectors including auto, banks, consumer durables FMCG, healthcare witnessed the positive performance. The Energy sector outperformed all others, surging by 6% during the month.
3. Factor-based investment strategies, including Momentum, Low Volatility, Quality, and Value, all delivered positive returns for September. Notably, the Value factor led the way with a significant 10% increase in the same period.
4. The Financial Services sector continued to play a pivotal role in driving returns for the Nifty 500 index, contributing 0.63% to the overall 2.18% gain for the index in September 2023.

Global Market Update

1. In the US market, the S&P 500 and NASDAQ 100 both experienced a 5% decline in September 2023, with the Information Technology (IT) sector once again being the primary contributor to the S&P 500’s fall.
2. Globally, both emerging and developed markets saw negative performance, with declines of 4% and 3%, respectively. South Korea witnessed the most significant drop at 5%, while Germany led the decline in developed markets with a 6% decrease.
3. Crude oil prices surged by 9% during September, raising concerns about potential impacts on inflation, fiscal balances, and current account deficits.
4. On the commodities front, precious metals faced declines, with gold and silver prices falling by 4% and 5%, respectively. In contrast, cryptocurrencies like Bitcoin and Ethereum registered gains of 4% and 2%, respectively.

Economic Indicators

1. India’s retail inflation eased to 6.83% in August from 7.44% in July, primarily due to a cooling in vegetable prices compared to the previous month.
2. India’s services sector showed robust growth in September, with a reading of 61 on the services PMI, marking the 26th consecutive month of growth, and the strongest output in 13 years.
3. The Federal Reserve maintained steady interest rates while signaling an expectation of one more rate hike by year-end and fewer cuts next year.
4. US CPI rose 3.7% in the year through august, marking another month of accelerating inflation with gas prices being the biggest contributor of rising inflation.