Economy and Business

  ·      The mutual fund industry witnessed net outflows to the tune of ~52,091 cr in September 2020 as against net outflows of ~INR 14,553 cr in August 2020. The equity category witnessed net outflow of Rs ~1009 cr in September 2020 as against net outflow of Rs ~ INR 4028 cr in the previous month. ·          AUMs of debt, equity and hybrid schemes in August 2020 accounted for 49.9%, 29.5% and 11.0% respectively of the overall AUMs; the balance ~9.6% was contributed by solution oriented and other schemes. ·          AUM of the mutual fund industry declined by 2.3% MoM (INR63,407 Cr) to INR26.86 Lakh Cr in Sept 2020. On QoQ basis, the total AUM of Mutual Fund increased by 5.4% and 9.6% YoY.   ·          Domestic mutual funds were net equity sellers in last 4 months. Mutual Funds v were net equity sellers to an amount of INR 904.69 Cr...

  Indian Equity Summary -   ·  The S Ø &P BSE Sensex and Nifty 50 jumped 3.5 percent and 3.3 percent , respectively as the domestic stock market bounced back on the back of a broad-based rally. Robust domestic factory activity and GST collection figures and more government relaxation on Covid-19-related constraints boosted market sentiments, while optimistic global signals, including China's bullish economic data and expectations of fresh US stimulus steps, led to more market buying.   ·  The central government, in an affidavit filed in the Supreme Court, has supported waiving compound interest or ‘interest on interest’ for small Ø  ticket loans up to Rs 2 crore which may have some negative impact on the banking stocks going forward.   ·  Going forward, global factors like development on the US -China relationship front , US elections ,India Ø  & China border issues while domestic factors like FII/DII inflows , inflation trajecto...

Indian Equity Summary: ·          The Indian market closed negative during last week. Equity market volatility was high as Nifty and Sensex dropped by 3.95 percent and 3.75 Ø percent respectively on a WoW basis as it tracked poor global cues ,in the midst of economic recovery uncertainty due to increasing COVID-19 infections and expiry of the September derivatives contract. Talks are on for another round of fiscal measures by the GOI before the festive season which may give necessary impetuous to the consumption side and may prove positive for the equities market. On the other hand the $2.2 trillion coronavirus package that could be voted on next week in US can give a massive boost to the US economy and the world markets.   ·          Going forward, global factors like development on the US -China relationship front , US elections ,India Ø & China border issues while domestic factors like FII/...

  Indian Equity Summary ·          Based on the stellar performance of Reliance shares and IT related stocks, the benchmark indices Nifty / Sensex closed positively ~1.2 per cent Ø on a WoW basis. The bank's nifty index closed in negative as the Supreme Court ruling on the indecision over interest was acting as an overhang while the RBI gave banks more space to continue extending the moratorium on loans as per the KV Kamath committee resolution framework which allows for the restructuring of corporate and personal loans.   ·          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 11000-11,600 in the near term. . Markets may consolid...

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...