Indian markets gained over 6% in October — their best monthly performance since March 2016 when they had gained 10% following the announcement of fiscal prudence in the Union Budget. This time around, the markets were buoyed by the government’s Rs 2.11-lakh-crore public sector bank recapitalisation plan and Rs 7-lakh-crore investment in the roads sector.
Across-the-board gains were seen in October, with the small- and mid-cap indices outperforming and all sectoral indices ending with gains. The major gainers were PSU banking and infra firms. The sharp uptick in October follows the previous two months of muted performance, during which overseas investors were major sellers. In the reporting month, both foreign portfolio investors (FPIs) and mutual funds (MFs) were net buyers.
