• Market Outlook
  • Asset Allocation
  • Investment Team
  • Investment Philosophy
  • Rupee Cost Averaging
  • Economic Indicators
  • Market Outlook
  • Asset Allocation
  • Investment Team
  • Investment Philosophy
  • Rupee Cost Averaging
  • Economic Indicators

EQUITY

FIXED INCOME

Review:

Bond markets remained volatile owing to the ongoing Greece crisis. Possibility of Greece exiting Eurozone kept the markets jittery globally. Greek Prime Minister called for a surprise referendum on creditors’ final bailout offer, due July 5. Greece’s landslide ‘no’ vote in its 5 July referendum was a negative surprise and increased the chances of Greece exit. Bond markets gained support on the back of possibility of government changing the FGII limits calculation from dollars to rupee. If the limits get reset in rupee at current exchange rates, then the overall debt limits could see a substantial increase. The Index of Industrial Production (IIP) for the month of April was seen at 4.1% as compared to 2.1% in March 2015. Consumer Price Index (CPI) was seen at 5.01% in May as compared to 4.9% in April. Indian Rupee closed against the dollar at 63.65 as on 30 June 2015.

Outlook :

We have a positive outlook on fixed income portfolio over short term. We expect yields to soften owing to potential increase in FII limits, weak growth parameters and subdued inflation. Possibility of Greece exit may cause volatility in the market. We continue to expect RBI to ease the rates further in the current fiscal year.