Month Gone By – Markets (period ended April 30, 2021)
US Markets witnessed dizzying heights, reaching all time high of 4219 on April 29th,
overcoming the crisis created by the collapse of Archegos Capital. The recovery in equity
markets reflected the broad based recovery in the US economy at 6.4% lead by consumption
and the Fed’s commitment to a low rate environment and continuing the purchase of assets
and thereby signalling the delay which global markets were expecting related to tapering
of the asset purchase program. The US Yields traded in a narrow range mostly 1.60 centric
shedding the volatility experienced in the prior month.
Nifty, which started the year on a positive note at 14,870 saw a deep plunge to 14296 by
mid-April owing to a deadlier second wave gripping the country. The resurgent virus and its
deadlier mutants saw a severe localised lockdown leading to expectations of a slow-down
in the economy and downside risks to economic projections.
The INR also remained under pressure amid the resurgence of Covid cases through out the
country. The INR collapsed from 73.13 at the beginning of the month to highs of 75.42 on
April 21st, before closing the month at 74.05.