Economy and Business

The mutual fund industry witnessed net outflows of ~INR 14,553 crore in August 2020 as against net inflows of ~ INR 89,812 crore in July 2020. ·         In August 2020, net outflows of ~ INR 4028 crore compared to net outflows of ~ INR 3845 crore in the previous month were seen in the equity category. ·         In August 2020, AUMs of debt, equity and hybrid category accounted for 50.5 percent, 29.0 percent and 11.0 percent of the total AUMs, respectively, and 9.5 percent of the balance was contributed by solution-oriented and other schemes. ·         The AUM of the MF industry increased by 1.4 percent on a MoM basis, and was reported at INR 27.49 Lakh Crore for August 2020 as compared to INR 27.11 lakh Crore in July 2020. ·         Total AUM in Equity category witnessed a rise of 4.3 percent on a MoM v basis, grew to INR 7.98 lakh crore in...

  Indian Equity Summary ·         The BFSI sector staged a sharp recovery last week; the BSE Bankex was up ~10% on wow basis which lent support to the benchmark indices Ø Sensex /Nifty to close in green for 2nd consecutive week by ~2.5%. The market sentiment remained positive on the back of US Fed Chairman speech that lower interest rate trajectory may continue for longer time, thus a higher probability of inflows in the emerging markets, coupled with RBI Governors statement the central bank has not exhausted its ammunition to deal with the pandemic-induced stress.   ·         Going forward, global factors like development on the US -China relationship front , India Ø & China border issues and domestic factors like the monsoon trajectory and 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...

Indian Equity Summary -   ·         The domestic equities outperformed global peers, as the broader (small cap) markets outperformed the benchmark indices for the second Ø week in a row. The Sensex / Nifty benchmark index grew by ~1.5 percent/1.7 percent(wow) whereas the BSE small grew by ~5.5(wow) percent in green on the back of broad based buying, though volatility continued to decrease. Positive global signals in the form of stimulus measures announced by China's central bank and excitement about the GOIs additional spending plans boosted sentiment among investors. A rally in power, realty, metal and consumer durables counters buoyed the market.   ·         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 th...

Indian Equity Summary-   ·         The domestic equity market benchmark indices ended mildly in red on the back of weak global cues. The small cap and the midcap indices bucked the trend and managed to close in green ~1.5% thus exhibiting an overall strength of the market and broad based buying. The uncertainty surrounding the additional stimulus package and the caution ahead of the weekend meeting between the US and China added to the cautious market sentiment. Upbeat economic data from the US and China, and positive reports from Russia on registering Covid-19 vaccine will act as tailwinds for the markets going forward.   ·         Going forward, global factors like development on the US -China relationship front , and domestic factors like the monsoon trajectory and remaining earnings season ; will continue to dictate the trend of the domestic equity market. We expect the trading range for Nifty betwee...

 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...

  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-...

  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 r...