Domestic equity markets have parted ways with their global counterparts in the first month of 2021. With six consecutive days of losses, Sensex closed the month of January 3.05% lower at 46,285. Even though Sensex did breach a historic milestone in the same month as it crossed the much-awaited 50,000 mark, the benchmark index ended 7.4% lower from there. “Indian equities deviated from the rest of the world (which saw flat or positive gains) and slid in January. The S&P BSE SENSEX saw consecutive declines in the final six days of trading to post a loss of 3% this month,” S&P Dow Jones said.
Although Sensex was the worst performed among domestic indices, others too were deep in red. S&P BSE Sensex 50 closed 2.39% lower, BSE 100 was down 2.12%, and BSE 200 slipped 1.95%. Meanwhile, the BSE 500 index 1.75% and BSE Allcap fell 1.73%. The Smallcap index too closed in red, falling 0.56%. However, the outperformer was the S&P BSE Midcap index, gaining 0.78%.
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“Only two of our reported Indian equity strategies rose this month. Enhanced Value and Low Volatility made an odd couple, gaining 3% and 0.4%, respectively. Momentum lagged more than the broader market to post a loss of 5%,” S&P said. Among various domestic sectoral indices, S&P BSE Telecom, BSE Industrial, and BSE Information Technology closed with gains while all other closed deep in red. S&P BSE Energy index fell 5.89%, the worst among the lot.
On Wall Street, Dow Jones Industrial Average closed flat with a negative bias in January, after slipping 2% on the final day of trade. The S&P Asia 50, consisting of 50 leading blue-chip companies that are listed in four major Asian markets — Hong Kong, Korea, Singapore and Taiwan closed nearly 7% higher during the month. The S&P Emerging BMI, gained 2% during the same period. Among those that followed Indian indices into the negative territory were S&P TOPIX 150, consisting of large-cap Japanese companies along with S&P Latin America 40, which comprises of 40 blue-chip companies from Brazil, Chile, Colombia, Mexico and Peru.