Multi-Asset Weekly Newsletter

Global Developments & Global Equities

S&P500 CLOSES AT RECORD HIGHS ON STRONG Q3 BANK EARNINGS 

Key data this week was the US Sep CPI print which came in on Thursday and was hotter than expected. Last week's jobs report and this week's CPI together make a November Fed skip a real possibility.

Market is now pricing in less than two cuts by the Fed by end of 2024 compared to three before last week's jobs report and two indicated by the September median dot plot.  As long as both jobs and inflation are both surprising on the up side, the risk sentiment is likely to hold up. 

Chinese Finance minister just today in his much awaited speech gave some specifics of the fiscal stimulus to revive the Chinese economy. Helping state government's raise debt to buy unsold homes and infusion of capital into state banks for lending to property sector were among the plans outlined.  

NIFTY V/S GLOBAL MARKETS

Chinese equities gave up gains this week on reopening post a national day holiday on Tuesday. Shanghai composite ended 3.5% lower while HangSeng shed 6.5%. Markets were awaiting specifics of China fiscal stimulus from Finance Ministers speech on Saturday. The Shanghai composite nevertheless is still up 20% from mid September lows.

Domestic Equities

The Nifty ended the week almost flat (0.2% lower). While it opened higher a couple of sessions, it was running into selling pressure and was not able to sustain gains. Broader markers however did better with Midcap (+1.3%), Smallcap (+1.1%) and Nifty Next 50 (+1%) indices ending the week higher. Pharma and Auto were the best performing sectors while metals and FMCG stocks were the laggards this week. The Nifty is currently trading at a P/E of 23.5 on a trailing 12 month basis.