Economy and Business

 Indian Equity Summary-   ·         Reflection of the global volatility was visible in the domestic equity markets .The nifty small cap (+5%) indices outperformed the benchmark Ø indices, Nifty (+1.5%) on WoW basis. The overall market closed with strong market breadth, and lower volatility while the INR marginally weakened. Top gaining sectoral indices includes Bse Metals ,BSE Auto and BSE CD while BSE Bankex and BSE IT were laggards. ·         In the recently conducted MPC meeting RBI maintained status quo on the rates. Ø   ·         Going forward, global factors like development on the US -China relationship front , and domestic factors like the monsoon trajectory and Ø remaining earnings season ; will continue to dictate the trend of the domestic equity market. We expect the trading range for Nifty between 10900-11,400 in the near term. Indian Debt Market-   ·         Government bond prices fell marginally as the yield of the 10-year benchmark 5.79% 2030 paper settled a

  Indian Equity Summary -   ·         S Ø &P BSE Sensex and Nifty 50 fell by 1.4% and 1% respectively on a WoW basis, and the six-week positive trend in Indian equities came to a pause as negative feelings prevailed among market participants, on the back of rising Covid-19 cases as well as a decline in US GDP at an annualized rate of 32.9% in 2Q 2020. Healthcare and IT were the best-performing sectors, while oil & gas and banks were the worst-performing ones on a weekly basis.   ·         Going forward, global factors like development on the US -China relationship front , and domestic factors like the outcome of the RBI MPC Ø meeting ( we expect a pause in Repo rate cut in the August RBI MPC meeting) and the monsoon trajectory ; will continue to dictate the trend of the domestic equity market. We expect the trading range for Nifty between 10700-11,100 in the near term. Indian Debt Market-   ·         Government bond prices fell marginally as the yield of the 10-year be

  FROM THE CEO’s DESK Dear Investors, “Behind every dark cloud there is an every-shining sun. Just wait. In time, the cloud will pass.” Marianne Williamson. All inclusive, economies are seeing recuperation with pointers, for example, PMI showing an improvement in spite of infection resurgence in a couple of nations. U.S., Euro, and China manufacturing activities have picked up pace, with July numbers in these three regions crossing 50 mark, indicating expansion. Financial and monetary policies remain exceptionally accommodative, and liquidity remains buoyant, which should provide continued support for further economic recovery. Equity market declines provide opportunities to buy better stocks at lower valuations. We foresee this slowdown and the year 2020 from an investment opportunity viewpoint rather than worrying, as the risk-reward ratio in the current scenario is in favour of equity investments. The current positive outlook on the global markets is well backed by negative real

  FROM THE CEO’s DESK Dear Investors, “More money has been lost trying to anticipate and protect from corrections than actually in them.” Peter Lynch. The BSE Sensex had the best quarter since June 2009 and had risen more than 35 percent from lows in March, despite Covid-19 lockdown having seriously hampered economic activity. Backed by better-than - expected economic data in recent months, along with a proactive government stance and central bank policy intervention coupled with the resurgence of FPI flows into the domestic equity market, indicates towards a "V-shaped" recovery. Corrections in the equity market offer incentives for buying quality stocks at lower valuations. Instead of worrying, we expect this downturn and the year 2020 from an investment opportunity perspective as the risk-reward ratio in the current scenario is in favour of equity investments. In regards to the domestic market, while we expect second half of FY21 to see a turnaround in production, diffic

Indian Equity Summary-   ·         Sensex ended higher by 1.2 percent as the bullish trend persisted for the fifth consecutive week in the domestic equity market ,on the back of Ø positive global cues and optimism over the development of Covid-19 vaccine .The focus is now turning to Q1FY21 earning season and more importantly for guidance and viewpoints of management. ·         Going forward, global factors like development on the US -China relationship front , any resurgence of Covid-19 cases globally, as economies Ø have started opening up ; will continue to dictate the trend of the domestic equity market. We expect the trading range for Nifty between 10800-11200 in the near term. Indian Debt Market-   ·         The bond prices fell as the yield on the latest 10-year benchmark 5.79% 2030 paper settled at 5.80% on Jul 17 compared with 5.76% on Jul 10. Ø   ·         Reserve Bank of India announces the auction of three Government of India 91day, 182 day and 364 day Treasury Bills for