*Few Recent Market Developments*

*Few Recent Market Developments*

1. *Crude Oil* has corrected all the way from US$86 per barrel (with market concern that it may reach even US$90-100 pb) to US$69.13 per barrel, taking Crude Oil into bear market. Further, an influential Wall Street Journal story indicating that Saudi Arabia is studying the possibilities of OPEC collapse provided additional comfort that the decades-old era of crude oil cartelization may extinct.

2. *US mid-term elections* result (wherein Democrats winning back House of Representatives; and Trump's Republicans retaining Senate) has given renewed confidence to US markets that the split house can act as a check on Trump's aggression. This renewed confidence has averted the risk of US markets slipping into bear market (which appeared high possibility scenario 15 days back). Dow Jones corrected 9.2% in October 2018, but gained back 6% post-election result. Unless US Congress and Trump get into disruptive gridlock in policy making, the risk of US market correction is reasonably contained.

3. *Indian Rupee* free fall from Rs.67 to Rs.74.48 during Jun-Oct'18 period, triggering the risks of inflation and elevated CAD, is contained with INR finding its feet and gaining to 72.50 level. The crucial factor of Crude Oil cool-off is helping INR.

4. *FPIs (Foreign Portfolio Investors)* were aggressive sellers during Sep-Oct’18, taking their total selling during 2018 to Rs.42,000 crores. However, on a crucial note, FPIs have turned net buyers during Nov’18 indicating that aggressive selling may be behind.

5. *Indian Mutual Fund inflows* have been quite heartening indicating the improving maturity level of Indian investors, to stay with Equity asset class despite volatility. Equity Mutual Funds have seen inflows during every month of 2018; including Sep’18 (Rs.11,251 cr) and Oct’18 (Rs.14,783 cr). Further, the inflows through SIPs have been scaling all-time-high-monthly figure every month, with the figure touching Rs.7,985 cr in Oct’18 in comparison to Rs.7,727 cr in Sep’18.

*View on Market*

Starting Nov’18, the market has evolved as excellent stock-pickers market. Going forward, market will start rewarding fundamentally quality stocks wherein the possibility of making positive Alpha is very substantial. Stay invested in quality stocks, and make volatility your friend. However, the stock selection has to be spot-on.