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

EQUITY

FIXED INCOME

Review:

Nifty closed ~5% lower in the month of January (FY16 YTD Nifty lost 11%). FIIs remained net sellers and DIIs remained net buyers of domestic equities worth US$ 1.7 bn and US$ 1.9 bn respectively. Nifty lost primarily due to global sell-off. Moreover, domestic factors like slow progress on reforms agenda and weak corporate earnings dented market sentiments. The following sectors outperformed the index: Oil & Gas, Media and Technology as against sectors such as EPC, Capital Goods and Telecom for the three month period ending January 2016.

Outlook:

Short term-Neutral; Long term-Positive

We expect the equity market to remain range bound in the near future on account of both domestic and global factors. These factors include weakness in domestic private sector capex, corporate earnings and rural demand. Moreover, weak global sentiments are also expected to keep domestic market returns subdued in the near term. Nifty valuations stretched at ~15.6x 12-month rolling forward as compared to long term average of 14.5x. However, we expect market earnings to improve and deliver double digit growth over the long term as domestic GDP growth improves further, supported by higher rural demand, soft inflation/commodity prices, low interest rates and stable global economic environment.