Month Gone By – Markets (period ended July 30, 2021)
The S&P 500 closed the month of July at 4395.26, delivering a staggering 2.3% return for the
month (18% for the calendar year), bolstered by better than expected earnings, lesser probability
of imposition of lockdown like measures, moderation in US Yields and continued expectations of
The US Yields moderated from 1.47 to 1.23 as the Federal Reserve, in testimony to the U.S. House
of Representatives Financial Services Committee, pledged support to the US Economy towards its
recovery from the pandemic and only views the current inflation as transitory.
The Bloomberg Commodity Index closed the month 96.27 vs 94.54 on June 30th. The biggest
contributor to the spike in index was Energy which grew by 3.8% and constitutes 19% of the
index, along with Metals growing at 2.6% while constituting 40% of the index.
On the domestic front, the Sensex and Nifty-50 Index ended the roller-coaster ride of the month
almost flat – at 0.2% and 0.3% m-o-m respectively. The small rally in the stock indices was lead
by Realty (BSE Realty 16.1% m-o-m), followed by Metals (BSE Metals 12.6% m-o-m), while Auto
Sector (BSE Auto 5.4% m-o-m) along with Energy (BSE Power 5.0% m-o-m) lead to the overall
moderation in the indices. The INR traded in a rangebound manner, within a range of 74.24 to