Weekly Market Insights: 5th February 2022
Updated: Oct 28
In line with expectations, markets showed some relief during the work, largely owing to the budget.
Several key events transpired during the week
The most noteworthy of all was the Union Budget 2022. Key highlights of the Budget were massive allotment towards capital expenditure spending. There was also focus on tech adoption, financial inclusion and green energy themes.
You can read the full summary of the budget here.
Another crucial event was the earnings announcement of various large cap global tech stocks. While Google and Amazon announced positive results and shot up, Facebook reported poor numbers and the stock fell by a sharp 25% in a single day. Due to the extreme behaviour in tech stocks, Nasdaq and S&P 500 remained volatile.
All sectors barring auto ended the week in green.
Nifty IT showed signs of recovery after facing significant downside in the last week.
Nifty Metal saw considerable gains after a while. This was owing to favourable steel scrap policies announced in the Budget and the capex allowance, which indirectly benefits steel/aluminium based raw material used in infrastructure building.
Mutual Fund Industry Highlights
A key event this week was SEBI asking AMCs to pause investments in overseas securities as the industry wide limit for such exposure was close to being breached. Various AMCs announced stoppage of fresh inflows (lumpsums, SIPs, STPs) in some pure global funds. Various AMCs are also in discussions with SEBI to modify the limit. While there is no confirmation on the same, fresh inflows could be tentatively resumed again soon, once limit is revised.
There are still some opportunities existing in the industry to gain international exposure.
NFOs currently open
Aditya Birla Sun Life Nifty Next 50 Index Fund
Axis Equity ETFs FOF
DSP Global Innovation Fund of Fund
Invesco India Flexi Cap Fund
Kotak Manufacture in India Fund
Kotak Nifty SDL Apr 2027 Top 12 Equal Weight Index Fund
Kotak Nifty SDL Apr 2032 Top 12 Equal Weight Index Fund
Navi US Total Stock Market Fund of Fund