2019 was a year of contrasts in many ways. While the economy slowed down sharply, equity markets did well as the Nifty and the Sensex delivered 12% and 14.4% respectively. Yet within equities broader markets didn’t do well with the Nifty Midcap 100 and the Nifty Smallcap 100 indices losing 4.3% and 9.5% respectively. Similar was the story in debt markets. Even with a 135bps cut in policy rates by the RBI, rate transmission was muted. Term premium stayed elevated until the RBI intervened with ‘Op...
