Coffee Can Newsletter – August, 2019

Post the union budget for 2019-20, Indian equity markets have witnessed a broad based selling with all major indices yielding negative return in July ’19. We do believe that FII selling, the first instance this calendar year, has been a significant contributor to the same. The negative sentiment has been further compounded by a dismal Q4FY19 earning. Given the weak macroeconomic conditions, expectations from Q1FY20F too remain muted. The current prevalent, risk off sentiment is also fueled by trust deficit in the financial market and the liquidity conundrum.