Budget and Market Outlook - SBI Funds Outlook_Feb 2018.pdfBudget and Market Outlook February 2018....
Transcript of Budget and Market Outlook - SBI Funds Outlook_Feb 2018.pdfBudget and Market Outlook February 2018....
Budget and Market Outlook
February 2018
Union Budget 2017-18
The Back Drop
Source: SBIMF Research
Rising Global Growth
Global growth has recovered to 3.7% (Q3 2017) and is expected hold the momentum in 2018
Moderating India Growth
India’s FY18 growth is pegged at 6.7% - lowest in last four years
Crude @ US$ 70 per barrel
Rising crude puts pressure on current account balance and government fiscal
GST Uncertainty Revenue collection has fallen short of desired targets coupled with pending refunds to businesses and complete devolution of states’ share
Twin Balance-Sheet Issues
Government has announced a mega Rs. 2.15 trillion recapitalization plan
Rising Bond Yields 10 Year G-sec is hovering at 7.40-7.45% since the start of the year ,raising the interest burden
Comfortable State Fiscal
The clause of keeping States’ revenue growth pegged at 14% for next 5 years is helping state government
Pre-election Year Budget
Government will head into general election in 2019 which may demand higher expenditure
Highlights: Relaxation of Fiscal deficit target by 30bps in FY18 and FY19
Source: indiabudget.nic.in, SBIMF Research; NB: RE – revised estimate, BE- budget estimate; Fiscal deficit is expenditure minus receipts, revenue deficit is revenue expenditure minus revenue receipts,
Key Budget Figures
• Union budget pencilled a slightly higher fiscal deficit than the pre-existing target, but with a promise to continue on the consolidationpath. The fiscal slippage is primarily due to spill-over impact of new indirect tax regime.
• The budget revised FY18 fiscal deficit to 3.5% in FY18 compared to initial Budget of 3.2%. FY19 deficit is targeted at 3.3% vs.FRBM vision of 3.3%. Revenue deficit will also be lowered from 2.6% in FY18 RE to 2.2% in FY19 BE.
• Largely Credible fiscal arithmetic (uncertainty from GST aside).
FY16 FY17 FY18 RE FY19 BE FY16 FY17 FY18 RE FY19 BE
1. Total Non Debt Receipts (A+B+C) 12,680 14,396 16,229 18,179 10.0 13.5 12.7 12.0A. Net tax revenue 9,438 11,014 12,695 14,806 4.4 16.7 15.3 16.6 Gross tax revenue 14,556 17,158 19,461 22,712 16.9 17.9 13.4 16.7 Direct tax (Income + Corporate Tax) 7,409 8,495 10,050 11,500 7.8 14.7 18.3 14.4 Corporate tax 4,532 4,849 5,637 6,210 5.7 7.0 16.3 10.2 Income tax 2,876 3,646 4,413 5,290 11.3 26.8 21.0 19.9 Indirect Tax (Customs+ Service+Excise+ GST) 7,098 8,620 9,364 11,160 30.5 21.4 8.6 19.2 Custom duties 2,103 2,254 1,352 1,125 11.9 7.1 -40.0 -16.8 Excise duties 2,881 3,821 2,770 2,596 53.1 32.6 -27.5 -6.3 Service tax 2,114 2,545 795 - 25.9 20.4 -68.8 GST - - 4,446 7,439 B. Non-tax Revenue 2,513 2,728 2,360 2,451 27.0 8.6 -13.5 3.9 of which dividend/profit transfer from RBI and other Fis, PSUs 1,121 1,230 1,064 1,073 24.8 9.7 -13.5 0.8 of which receipts from Economic services 910 1,017 888 896 40.6 11.8 -12.7 0.9C. Non Debt Capital Receipts 730 654 1,175 922 41.8 -10.4 79.7 -21.5 of which Disinvestment 421 477 1,000 800 11.6 13.3 109.5 -20.02. Total Expenditure (A+B) 17,908 19,752 22,178 24,422 7.6 10.3 12.3 10.1A. Revenue Expenditure 15,378 16,906 19,443 21,418 4.8 9.9 15.0 10.2B. Capital Expenditure 2,530 2,846 2,734 3,004 28.6 12.5 -3.9 9.9Fiscal Deficit 5,328 5,356 5,948 6,243 4.3 0.5 11.1 4.9Nominal GDP 1,36,820 1,51,837 1,67,847 1,87,223 9.9 11.0 10.5 11.5Fiscal Deficit (as % of GDP) 3.9 3.5 3.5 3.3Revenue deficit (as % of GDP) 2.5 2.1 2.6 2.2
Rs. Billion % growth
Fiscal Deficit: Broad consolidation to continue
Source: indiabudget.nic.in, SBIMF Research
Third miss in the Fiscal deficit target in last ten years
Lehman crisisEuro debt crisis
GST implementation
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2003
-04
2004
-05
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
2012
-13
2013
-14
2014
-15
2015
-16
2016
-17
2017
-18
Gross fiscal deficit (% of GDP)
Actuals (% of GDP) BE (% of GDP)
Hits and Misses in FY18
Source: indiabudget.nic.in, SBIMF Research
Revenue shortfall explains the fiscal slippage (green denotes RE higher than BE, Red denotes RE lower than BE)
Rs. Billion FY18 BE FY18 RE RE- BE
Indirect Tax collection (ex GST cess) 9,316 8,798 -518
Direct Tax collection 9,800 10,050 250
Non-Tax Revenue: Dividend and Profit Transfer 1,424 1,064 -360
Non-Tax Revenue: Economic Receipts 922 888 -34
Disinvestment Receipts 725 1,000 275
TOTAL RECEIPTS (ex GST cess) 16,002 15,616 -386
Revenue Expenditure (ex GST cess) 18,369 18,830 461
Capital Expenditure 3,098 2,734 -364
TOTAL EXPENDITURE (ex GST cess) 21,467 21,565 97
• The fiscal slippage is primarily due to spill-over impact of new indirect tax regime leading to shortfall in indirect tax collection
• Lower than expected profit transfer from RBI is the second prime reason for the revenue shortfall
• In FY18, while the revenue expenditure was higher than budgeted, capital expenditure was lower than budgeted leading to nearlyunchanged total expenditure (marginally higher).
Budget in Charts
Fiscal deficit targeted at 3.3% in FY19 Revenue and primary deficit to reduce
Credible expenditure and receipts growth assumption Gross and Net market borrowing nearly flat as the burden shifts to other sources
Source: indiabudget.nic.in, SBIMF Research
5.66.15.8
4.44.04.0
3.4
2.6
6.16.6
4.9
5.9
4.94.5
4.13.93.53.53.3
2.0
3.0
4.0
5.0
6.0
7.0
- 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000
FY01
FY02
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
RE
FY19
BE
Fiscal Deficit (Rs. Billion) Fiscal deficit (% of GDP)- RHS
4.0 4.4 4.33.5
2.5 2.51.9
1.1
4.65.3
3.3
4.53.7
3.2 2.92.5
2.12.6 2.7
0.91.5 1.1
0.0 0.00.4
-0.2-0.9
2.63.2
1.82.8
1.81.1 0.9 0.7 0.4
1.1 1.2
-2.0-1.00.01.02.03.04.05.06.0
FY01
FY02
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
RE
FY19
BE
Revenue deficit (% GDP) Primary Deficit (% GDP)
7 7
21
30
7
-3
23
33
-7
11
36
-4
17 159 10
14
49
9 1114 14
62
15
22 24
16 17
9 811
7 810 12 10
-10.0-5.00.05.0
10.015.020.025.030.035.040.0
FY01
FY02
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
RE
FY19
BE
Total Revenue Total Expenditure
% y-o-y
1.5 1.6
3.1
4.5 4.4 5.1
5.6 5.6 5.9 5.9 5.8 6.0 6.1
1.1 1.1
2.6
4.0 3.3
4.4 4.7 4.5 4.5
4.0 3.5
4.0 3.9
-
1.0
2.0
3.0
4.0
5.0
6.0
7.0
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
RE
FY19
BE
Gross Market Borrowing (Rs. trillion)Net Market Borrowing (Rs. trillion)- Net of Buybacks
Receipts target looks achievable
Source: indiabudget.nic.in, SBIMF Research
Tax collection assumptions look realistic- though GST uncertainty remains
Receipts Break-up
Disinvestment- record collection in FY18Non-tax revenue is projected to stay flat
400
400
300
558 63
4 695
565
725 80
0
228
181 25
9
294 37
7 421 47
7
1,00
0
-
200
400
600
800
1,000
1,200
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
Disinvestment (Budgeted) Disinvestment (Actual)
FY18 : 1000 bn is RE
300
1,367
387 437
677 647
910 1,017
888 896
503 480 506 538
904 898
1,121 1,230
1,064 1,073
-
200
400
600
800
1,000
1,200
1,400
1,600
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18RE
FY19BE
Economic Services Dividend and profits receipts
Rs. Billion
7.8
28.2
14.5
21.4
18
2
1417
0
5
10
15
20
25
30
Direct Tax Indirect Tax
FY16 FY17 FY18 RE FY19 BE
Gross Tax collections (% growth)
6.3 7.4 8.2 9.0 9.4 11.0 12.714.81.2
1.4 2.0 2.0 2.5
2.72.4
2.5
0.4 0.4
0.4 0.5
0.7 0.7
1.20.9
7.9 9.2
10.6 11.5
12.7 14.4
16.218.2
-
5.0
10.0
15.0
20.0
FY12 FY13 FY14 FY15 FY16 FY17 FY18 RE FY19 BE
Net Tax Revenue Non-Tax Revenue
Non-debt Capital Receipts Total Non Debt Receipts
Rs. Trillion
Tax Buoyancy to improve in FY19
Source: indiabudget.nic.in, SBIMF Research
Gross Tax collections (ex of GST cess) is projected to improve
Rs. Billion FY14 FY15 FY16 FY17 FY18 RE FY19 BENet tax revenue 8,159 9,036 9,438 11,014 12,081 13,906
Gross tax revenue 11,387 12,449 14,556 17,158 18,848 21,812 Corporate tax 3,947 4,289 4,532 4,849 5,637 ` Income tax 2,378 2,583 2,876 3,646 4,413 5,290 Custom duties 1,721 1,880 2,103 2,254 1,352 1,125 Excise duties 1,695 1,881 2,881 3,821 2,770 2,596 Service tax 1,548 1,680 2,114 2,545 795 GST 4,446 7,439
CGST 2,214 6,039 IGST 1,619 500 Compensation cess 613 900
Taxes of union territories 31 32 39 41 47 52 Less States' share in tax revenue 3,182 3,378 5,062 6,080 6,730 7,881 Less Contingency/Disaster Funds 47 35 57 65 37 25
Tax Break-up
8.7 8.9
8.1
8.7 9.1
9.6
10.1
11.2 12
.1
11.0
9.8
10.4
10.2 10.4
10.1
10.0 10
.6 11.3
11.2 11
.7
6.0
7.0
8.0
9.0
10.0
11.0
12.0
13.0
FY00
FY01
FY02
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
RE
FY19
BE
Gross tax revenue
% GDP
Expenditure (as % of GDP) at record low
Source: indiabudget.nic.in, SBIMF Research
Expenditure adjusted for cess transfer is at record low (as % of GDP), quelling market expectation of populist budget
Food and fertilizer subsidy scaled up, but petroleum kept unchanged
Rising interest payment
Higher capex growth on a relatively low base15
.415
.514
.7 16.0
15.8 17
.3 18.6 19
.818
.918
.518
.918
.316
.916
.116
.215
.714
.814
.4 15.1 15
.815
.115
.315
.7 16.7
16.9
15.7
14.0
13.9 14
.6 16.0
16.1
15.7
14.9
14.2
13.9
13.4
13.1
13.0
12.8
12.6
10
12
14
16
18
20
22
FY80
FY82
FY84
FY86
FY88
FY90
FY92
FY94
FY96
FY98
FY00
FY02
FY04
FY06
FY08
FY10
FY12
FY14
FY16
FY18
RE
Total Expenditure
% GDP
14.9
14.1
10.1
8.5 10
.3
6.9
4.8 9.
9 15.0
10.2
25.0
39.0
1.3 5.
2
12.5
4.8
28.6
12.5
-3.9
9.9
-10.0
0.0
10.0
20.0
30.0
40.0
50.0
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
RE
FY19
BE
Revenue Expenditure Capital Expenditure
% growth
1,50
3
1,71
0
1,92
2
2,13
1
2,34
0
2,73
2
3,13
2
3,74
3
4,02
4
4,41
7
4807
5308
5758
3.6 3.5 3.53.4
3.1 3.1 3.13.3
3.2 3.2 3.2 3.23.1
2.0
2.2
2.4
2.6
2.8
3.0
3.2
3.4
3.6
3.8
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18RE
FY19BE
Interest Payment (Rs. Billion) % GDP- RHS
1102
1403
1693
663 650 701
275 245 249
0
200
400
600
800
1000
1200
1400
1600
1800
FY17 FY18 RE FY19 BE
Food Fertilizer Petroleum
Rs. Billion
Revenue expenses make 88% of center’s total spend
Source: indiabudget.nic.in, SBIMF Research
The committed expenditure of the center (Interest payments, Salaries & Pension, Defense, Subsidies and tax administration) accounts for ~60% of center’s total spend leaving limited space for discretionary and capex spend
Break-up of Expenditure
Source: indiabudget.nic.in, SBIMF Research
Rs. Billion FY16 FY17 FY18 RE FY19 BEEXPENDITURE 17,908 19,752 22,178 24,422
Pension 968 1314 1474 1685Defence 2,259 2518 2671 2827Subsidy 2,418 2040 2297 2643
Food 1,394 1102 1403 1693Fertilizer 724 663 650 701Petroleum 300 275 245 249
Agriculture 237 502 566 638Commerce & Industry 162 214 263 280Devt of North East 20 25 27 30Education 672 720 819 850Energy 211 310 417 411External Affairs 145 128 137 150Finance 712 415 294 203Health 341 390 532 547Home Affairs 678 784 881 935Interest Payment 4,417 4807 5308 5758IT & Telecon 151 180 178 224Others 460 637 695 728Planning & Statistics 60 45 51 52Rural Devt 902 1139 1356 1381Scientific Dept 174 195 224 249Social Welfare 317 318 386 442Tax Administration 260 221 777 1055Transfer to States 1,148 1327 1203 1429Transport 874 1022 1071 1346Union Territories 118 133 142 141Urban Devt 202 369 408 418
Resources of Public Sector Enterprises is funding the capex
Source: indiabudget.nic.in, SBIMF Research
… leading to higher borrowing by PSEs from the marketCapex through resources of PSEs is on the rise…
1,127 1,566 1,586 1,669 1,877 1,967 2,530 2,846 2,734 3,004 1,880
1,784 2,002 1,937 2,631 2,291
3,114 3,381
4,769 4,783
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18RE
FY19BE
Total Capital expenditure through Budget Resources of PSEs
Rs. Billion
1,234 1,207 1,071 1,722 1,167 1,247 1,675 1,695 1,656
405 703 733 614
614 1,266
1,672 1,932 1,726 2,036 2,368 2,390 2,576 2,370
3,216
4,064 4,769 4,783
-
1,000
2,000
3,000
4,000
5,000
6,000
2010
-11
2011
-12
2012
-13
2013
-14
2014
-15
2015
-16
2016
-17
RE
2017
-18
RE
2018
-19
BE
Internal Resources Bonds/Debentues E.C.B./Suppliers Credit
Others EBR of PSEs for Capex
• Capex through resources of PSEs (Rs.4.8 trillion) are much higher than capexthrough Budget (Rs. 3 trillion),
• Consequently, this has also lead tohigher bonds issuances by PSEs. Budgetexpects PSEs to raise Rs. 1.7 trillionthrough bonds vs. Rs. 1.9 trillion in FY18and 600-700 billion a couple of yearsago.
• Total capex after adding the resources ofPSEs are pegged at Rs. 7.8 trillion (4.3%of GDP) vs. 7.5 trillion (4.5% of GDP) inFY18.
Budgeted Bonds Issuances by PSEs (Rs. Billion)
Ministry/ Department Public Sector Enterprise FY18 BEMinistry of Railways Indian Railway Finance Corporation 549 Ministry of Road Transport and Highways National Highway Authority of India 520 Department of Food and Public Distribution Food Corporation of India 130 Ministry of Power Power Grid Corporation of India Limited 123 Ministry of Power National Thermal Power Corporation Limited 76 Total 1,399 Other PSEs 327 Grand Total 1,726
IRFC and NHAI are likely to be prime borrowers in FY18
Outlay on Major Schemes
Source: indiabudget.nic.in, SBIMF Research
Rs. Crore % ShareFY17 FY18RE FY19BE FY17 FY18RE FY19BE
National Highways Authority of India including Road Works 51,963 60,671 70,544 13 13 14
Mahatma Gandhi National Rural Employment Guarantee Programme 48,215 55,000 55,000 12 12 11
National Education Mission 27,616 29,556 32,613 7 6 6
National Health Mission (NHM) 22,870 31,292 30,634 6 7 6
Pradhan Mantri Awas Yojna 20,952 29,043 27,505 5 6 5
Umbrella ICDS 15,893 19,963 23,088 4 4 4
Pradhan Mantri Gram Sadak Yojna 17,923 16,900 19,000 4 4 4
Swachh Bharat Mission (SBM) 12,619 19,248 17,843 3 4 3
MRTS and Metro Projects 15,327 18,000 15,000 4 4 3
Interest subsidy for short term credit to farmers 13,397 14,750 15,000 3 3 3
Green Revolution 10,105 11,185 13,909 3 2 3
Crop Insurance Scheme 11,052 10,698 13,000 3 2 3
Urban Rejuvenation Mission : AMRUT 9,277 8,999 12,169 2 2 2
National Programme of Mid Day Meal in Schools 9,475 10,000 10,500 2 2 2
Bharatnet 7,226 7,000 10,000 2 1 2
National Social Assistance Programme 8,854 8,745 9,975 2 2 2
Pradhan Mantri Krishi Sinchai Yojana 5,134 7,392 9,429 1 2 2
National Rural Drinking Water Mission 5,980 7,050 7,000 1 2 1
National Livelihood Mission-Ajeevika 3,486 4,699 6,060 1 1 1
Umbrella Scheme for Development of Schedule Castes 4,863 5,114 5,183 1 1 1
Others 76,444 94,526 1,14,441 19 20 22
Grand Total 3,98,671 4,69,831 5,17,893 100 100 100
Amongst all schemes, NHAI and MGNREGs receive the maximum allocation
Capital Outlay on Infrastructure spending
Source: indiabudget.nic.in, SBIMF Research
GBS IEBR TOTAL GBS IEBR TOTAL GBS IEBR TOTALRai lways 25 400 800 1,200 531 934 1,465 33 17 22Road Transport and Highways 20 509 593 1,101 594 620 1,214 17 5 10Petroleum and Natura l Gas 16 15 873 889 37 892 929 140 2 5Power 9 9 643 652 13 535 548 47 -17 -16Affordable hous ing (Urban) 5 60 - 60 65 250 315 8 421Department of Higher Education 5 3 - 3 28 280 308 1000 12200Telecommunication 4 38 98 135 45 170 215 20 74 59MRTS and Metro Projects 3 178 15 193 149 19 168 -16 28 -13Coal 3 - 145 145 - 158 158 9 9Hous ing And Urban Develpoment Corporation 2 - 137 137 - 130 130 -5 -5Steel 2 - 114 114 - 113 113 -1 -1New and Renewable Energy 2 1 95 95 - 103 103 9 8Digi ta l India 1 14 - 14 31 57 88 115 515Department of Atomic Energy 1 14 78 92 17 57 73 16 -27 -21Defence (Misc) 1 49 - 49 55 - 55 12 12Shipping 1 1 32 33 3 40 43 100 28 30Civi l Aviation 1 2 25 27 - 41 41 61 52Development of North Eastern Region 0 3 - 3 6 - 6 82 82Grand Total 100 1,296 3,648 4,943 1,572 4,399 5,971 21 21 21
Ministry/Department.Change (% y-o-y)FY18 RE (Rs billion) FY19 BE (Rs billion)% share in
FY19
Railways, Roads and Energy receives the maximum thrust
Financing of Fiscal Deficit: A paradigm Shift
Source: indiabudget.nic.in, SBIMF Research;
Reduction in market borrowing is compensated by higher other capital receipts
• While Gross market borrowing is pegged at Rs. 6.06 trillion, net market borrowing (net of buybacks) has been lowered to Rs. 3.9trillion due to redemption of Rs. 1.4 trillion of G-secs maturing in FY18 and Rs. 720 billion of buybacks.
• Withdrawal from small savings funds have been lowered to Rs. 750 billion.
• 7PC also enabled higher employee contribution in GPF (Gross Provident Fund), thus enabling a higher financing from there(captured in other capital receipts)
FY16 FY17 FY18 RE FY19 BE FY16 FY17 FY18 RE FY19 BEFinancing of Fiscal Deficit 5,328 5,356 7,174 8,043 100 100 100 100Net market borrowings (dated securities) 4,041 3,497 4,024 3,901 76 65 56 49 Gross market borrowings 5,850 5,830 5,990 6,055 110 109 83 75 Repayment of domestic mkt borrowings 1,444 1,748 1,396 1,435 27 33 19 18 Net Buybacks 375 597 570 720 7 11 8 9Short-term borrowings 507 55 775 170 10 1 11 2Net external assistance 127 180 24 26 2 3 0 0Rcpts frm small savings, PPF & depst schms 525 674 1,026 750 10 13 14 9Receipts from state providend fund 119 177 150 170 2 3 2 2Other capital receipts -122 861 343 847 -2 16 5 11Drawdown on cash balances 132 89 -394 431 2 2 -5 5
Rs. Billion % Share in total Fiscal Deficit
The Budget Agenda
Agriculture and Rural Economy
Health, Education and Social Protection
MSMEs and Employment
Infrastructure and Financial Sector Development
Building Institutions and Public Service
Delivery
Fiscal management
Source: indiabudget.nic.in, SBIMF Research
Highlights of the Budget
Source: SBIMF Research
• Union budget pencilled higher fiscal deficit than the pre-existing target for both FY18 and FY19, but with a promise to continue on theconsolidation path in a medium-term basis. Largely Credible fiscal arithmetic (uncertainty from GST aside)
• Accordingly general government debt-to-GDP ratio of 60% is now aimed to be achieved by 2025 vs. 2023 previously
• Expenditure:• Expenditure as % of GDP are at historic low. Overall expenditure profile quite muted with limited impulse for growth• The thrust of spending remains on infrastructure, rural economy and agriculture sector• Total capital expenditure including Extra-budgetary resources (IEBR) has actually fallen to 4.2% of GDP from 4.5% of GDP in
FY8RE
• Taxation Measures:• Imposition of the 10% long term capital gains tax (LTCG) on equities• Reduction of corporate tax to 25% for small business.• Customs duty raised for certain agri and electronic products• In the personal income space, the tax exemption limit for senior citizens were increased by Rs. 50,000 while the salaried
individuals would get a flat taxable income deduction of Rs. 40,000 in lieu of repealed the travel and medical allowance.
• Positive in the Budget:• Taxation measures can likely help in increasing the disposable income.• Reduction of MSME taxes and introduction of fixed-term employment bodes well from the job creation perspective• The thought of having a unique ID for businesses (on the lines of Aadhar which is for individuals) can go a long way in
improving the ease of doing business.• With farm and rural thrust, consumption growth momentum should continue• The continued focus on the infrastructure (9% increases in monetary allocation) is positive for the related sectors• Health Insurance Scheme covering over 10 crore households• Resisted announcing a universal basic income scheme, which would have entailed a large fiscal cost• Law for fixing the salaries of Member of the Parliament
• What we miss• Inadequate subsidy allocation to oil subsidy• Greater focus is needed on employment generation• Education sector expenditure through the budget has stagnated over the past 3-4 years with allocations to elementary and
secondary education marginally declining
EQUITY MARKET
Global equity market returns: January 2018
Source: Bloomberg, SBIMF Research
• Equity continued to deliver positive returns across most markets in January 2018 (barring UK).
• Emerging Markets (MSCI EM index) has delivered 8%. NIFTY returns at 5% was relatively lower compared to other emergingmarket.
• Brazil and Russia are the best performing markets while UK under-performed.
Performance in January 2018
-1
2 2 23 3 4 4 4
5 5 5 6
89 9 9
10 11
(2)
0
2
4
6
8
10
12U
K
SRI L
AN
KA
GER
MA
NY
JAPA
N
FRA
NCE
IND
ON
ESIA
KORE
A
TAIW
AN
PHIL
IPPI
NES
IND
IA N
IFTY
CHIN
A
DO
W JO
NES
S&P
500
MSC
I EM
HA
NG
SEN
G
MSC
I EM
- EU
ROPE
PAKI
STA
N
RUSS
IA
BRA
ZIL
Indian stock market sector-wise returns: January 2018
Performance in January 2018
Source: Bloomberg, SBIMF Research
• Equity market continued to deliver positive returns in January 2018. Both Sensex and NIFTY were up 5% in January.
• Mid-cap (-2%) and Small cap (-2%) under-performed.
• IT and Capital goods emerged as the top performer
• Pharmaceuticals and Auto were the sector laggards
-3-2 -2
-1 -1
0 1 12
4 45
57 7
12
(4)
(2)
0
2
4
6
8
10
12
14A
UTO
SMA
LL C
AP
MID
CA
P
PHA
RMA
PSU
OIL
& G
AS
FMCG
REA
L ES
TATE
BSE
500
BSE
100
MET
ALS
NIF
TY
SEN
SEX
BAN
KEX
CAP
GO
OD
S IT
FIIs continue to invest in emerging marketsRussia topped the list in FIIs investment while India was somewhere in middle
Source: Bloomberg, SBIMF Research
India and Taiwan have been receiving net positive equity investment for six years in succession
Net FII- US$ billion 2012 2013 2014 2015 2016 2017Cumulative since Financial Crisis (2009-2017)
India 24.5 19.8 16.2 3.3 2.9 8.0 121.1 Indonesia 1.7 -1.8 3.8 -1.6 1.3 -3.0 7.1 Philippines 2.6 0.7 1.3 -1.2 0.1 1.1 7.5 S Korea 15.1 4.9 5.7 -3.6 10.5 8.3 76.7 Sri Lanka 0.3 0.2 0.2 -0.0 0.0 0.1 0.3 Taiwan 4.9 9.2 13.2 3.3 11.0 5.8 63.6 Thailand 2.5 -6.2 -1.1 -4.4 2.2 -0.8 -4.1 Brazil 2.4 4.9 9.0 5.7 3.9 4.2 42.9 Mexico 9.9 -0.9 4.8 3.6 9.5 NA 24.8 South Africa -0.4 0.1 1.5 0.7 -8.6 -2.6 2.0 Russia -0.3 6.7 13.8 7.9 7.9 7.9 57.4
(2,000)
-
2,000
4,000
6,000
8,000
10,000
Thai
land
Sri L
anka
Phili
ppin
es
Indo
nesi
a
Sout
h A
fric
a
Indi
a
S Ko
rea
Taiw
an
Braz
il
Russ
ia
2018 (till Jan)Net FII inflows in Equity (USD mn)
Continued inflow in the Indian equity space in January
FIIs invested US$ 2.1 billion in January 2018
Source: MOSL, SBIMF Research
Mutual fund Inflows continued to be positive… … and offset the insurance industry outflows
0.90.1
2.3
-0.1
2.9
1.41.71.2
-0.1-1.0
0.9
-2.6
-0.9
0.8
-1.1
0.0
-1.7-1.2
4.1
0.60.40.8
1.71.51.4
-0.7
-2.6
-1.2
0.0
1.6
5.1
-0.3
1.5
0.60.4
-2.0-1.7
0.3
3.0
-0.7
2.1
Sep-
14
Dec
-14
Mar
-15
Jun-
15
Sep-
15
Dec
-15
Mar
-16
Jun-
16
Sep-
16
Dec
-16
Mar
-17
Jun-
17
Sep-
17
Dec
-17
US$ billion
0.71.0
0.3
1.1
0.10.70.6
1.5
0.71.60.9
1.61.4
0.51.00.71.1
0.9
-1.5
-0.1
1.1
0.00.0
0.40.6
1.4
2.0
1.4
0.80.30.7
1.71.51.41.8
2.82.7
1.51.9
1.30.8
Sep-
14
Dec
-14
Mar
-15
Jun-
15
Sep-
15
Dec
-15
Mar
-16
Jun-
16
Sep-
16
Dec
-16
Mar
-17
Jun-
17
Sep-
17
Dec
-17
US$ billion
-0.9
-0.3
-1.5
-0.3
-1.4
-0.4-0.6
0.40.7
0.3
-0.7
0.9
0.1
-0.7
0.30.3
0.80.7
-1.0
-0.3
0.0
-0.3
-0.9-1.1
-0.3-0.2
0.7
0.0-0.1
-0.2
-1.3
-0.3
-0.8
-0.4
-1.1
-0.3
0.5
0.0
-0.4
0.0
-0.9
Sep-
14
Dec
-14
Mar
-15
Jun-
15
Sep-
15
Dec
-15
Mar
-16
Jun-
16
Sep-
16
Dec
-16
Mar
-17
Jun-
17
Sep-
17
Dec
-17
US$ billion
3Q FY18 earnings review
Source: Antique, SBIFM Research
Earnings growth for FY18 is expected at 13-15%. FY19 EPS expected to grow by +20%
• 29 out of 50 NIFTY companies has reported the result for3Q FY18 (as of Jan end). The earnings outcome thus farsuggests continued improvement in profit growth (~12%growth for 29 NIFTY companies that have reported results)along with higher top-line growth (12.2% y-o-y) andimproved operating profit (8.4% EBITDA growth).
• Qualitative trends of the results are encouraging and pointto on-going economic recovery.
• Robust volume growth across consumption driven sectors-FMCG, cement, strong performance from retail focussedprivate banks, strong operating performance in cyclical likeL&T, and continuity with the trend observed since the lastquarter led to stability in earnings estimates for FY18.
• Corporate profits as percentage of GDP has hit anextremely low point and logically should mean revert.
• Earnings revival is absolutely critical for such richvaluations to sustain.
95128
175207
239283
247284
330 351385
427391 402
427485
580
-20%
-10%
0%
10%
20%
30%
40%
0
100
200
300
400
500
600
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
e
FY19
e
Nifty EPS YoY, RHS
3.0
4.75.4
6.2
7.37.8
5.5
6.5 6.2
4.9 4.6 4.33.8
3.1 2.9
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
Average of 5.4%
Corporate profit as percentage of GDP
Earnings expectations have stabilized
Source: Bloomberg consensus estimates, SBIMF Research
390
410
430
450
470
490
510
530
550
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
FY15 FY16 FY17 FY18
NIFTY EPS expectation for the respective year
Market earnings expectations for FY18 have stabilized since October
Source: Morgan Stanley, SBIMF Research,
Indian Equity Valuations relative to emerging markets
India’s valuations relative to other EMs in line with historical 5 year average…
…and the relative RoE remains healthy
30%
40%
50%
60%
70%
80%
90%
Jan-
14
Apr
-14
Jul-1
4
Oct
-14
Jan-
15
Apr
-15
Jul-1
5
Oct
-15
Jan-
16
Apr
-16
Jul-1
6
Oct
-16
Jan-
17
Apr
-17
Jul-1
7
Oct
-17
Jan-
18MSCI India's P/E prem. wrt MSCI EM
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
5.5%
Jan-
14
Apr
-14
Jul-1
4
Oct
-14
Jan-
15
Apr
-15
Jul-1
5
Oct
-15
Jan-
16
Apr
-16
Jul-1
6
Oct
-16
Jan-
17
Apr
-17
Jul-1
7
Oct
-17
MSCI India RoE relative to EM (in %)
Valuations have corrected in January; but still high
Valuations across the capitalization curve are rich when compared to history
Source: Bloomberg, MOSL, SBIMF Research,
82 83
103
55
9588
7164 66
8169
8089
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
E
Average of 76% for the period
Market Cap to GDP rose to eight year high
6
11
16
21
26
31
36
Sep/
11D
ec/1
1Fe
b/12
May
/12
Aug
/12
Oct
/12
Jan/
13M
ar/1
3Ju
n/13
Sep/
13N
ov/1
3Fe
b/14
May
/14
Jul/
14O
ct/1
4D
ec/1
4M
ar/1
5Ju
n/15
Aug
/15
Nov
/15
Feb/
16A
pr/1
6Ju
l/16
Sep/
16D
ec/1
6M
ar/1
7M
ay/1
7A
ug/1
7N
ov/1
7Ja
n/18
S&P Mid Cap 1Y fwdPE
7
9
11
13
15
17
19
21
23
Jan/
11M
ay/1
1Se
p/11
Jan/
12M
ay/1
2Se
p/12
Jan/
13M
ay/1
3Se
p/13
Jan/
14M
ay/1
4Se
p/14
Jan/
15M
ay/1
5Se
p/15
Jan/
16M
ay/1
6Se
p/16
Jan/
17M
ay/1
7Se
p/17
Jan/
18
Sensex…
Mean: 16
+1 SD
-1 SD
13
15
17
19
21
23
25
27
Apr
/15
May
/15
Jun/
15Ju
l/15
Aug
/15
Sep/
15O
ct/1
5N
ov/1
5D
ec/1
5Ja
n/16
Feb/
16M
ar/1
6A
pr/1
6M
ay/1
6Ju
n/16
Jul/
16A
ug/1
6Se
p/16
Oct
/16
Nov
/16
Dec
/16
Jan/
17Fe
b/17
Mar
/17
Apr
/17
May
/17
Jun/
17Ju
l/17
Aug
/17
Sep/
17O
ct/1
7N
ov/1
7D
ec/1
7Ja
n/18
S&P Small Cap 1Y fwd PE
Equity Market outlook
• Indian equity market continued to rally in January (though lower than otheremerging markets) helped primarily by the spur in FIIs inflow (US$ 2.1billion). Domestic Mutual Fund continued to invest while insurance sectorsold off.
• Some bit of the January gains were reversed post budget as market asthe imposition of 10% Long term Capital Gains tax dented the marketexuberance. We see this as a knee-jerk reaction. The grand-fatheringclause in the LTCG should help fray the market sentiments.
• The corporate tax rates for small businesses (with annual turnover lessthan Rs. 250 crore) were brought down to 25%. In the personal incomespace, the tax exemption limit for senior citizens were increased by Rs.50,000. These taxation measures can likely help in increasing thedisposable income. Along with farm and rural thrust, consumption growthmomentum should continue.
• The continued focus on the infrastructure (9% increases in monetaryallocation) is positive for the related sectors.
• The event is behind us, so the market should re-align its focus to globalcues sand earning trajectory.
• So far, the latest Q3 FY18 results are comforting. The revival in earningsis absolutely critical for such rich valuations to sustain.
• Last few years have favoured growth over value stocks. However, recentlywe have seen interest emerging in contrarian themes such as corporatelenders, telecom, IT and construction. After the stellar performance in2018, particularly in mid and small caps, it is very important to keep aneye on valuations. With easy gains drying out, one needs to focus onbottom up stock picking.
Valuations are at 20 times on 1 year forward earnings
Source: Bloomberg, SBIMF Research
7
9
11
13
15
17
19
21
23
Jan/
11
Jun/
11
Nov
/11
Apr
/12
Sep/
12
Feb/
13
Jul/
13
Dec
/13
May
/14
Oct
/14
Mar
/15
Aug
/15
Jan/
16
Jun/
16
Nov
/16
Apr
/17
Sep/
17
Sensex 1Y fwd PE
Mean: 16
+1 SD
-1 SD
Fixed Income Market
Global rates snapshot for January 2018
Source: Bloomberg, SBIMF Research
10 Year Gsec Yield (% mthend) 2016 end 2017 end Jan-18
m-o-m change (in bps)
Developed market
US 2.44 2.41 2.71 30
Germany 0.21 0.43 0.70 27
Italy 1.82 1.75 1.76 1
Japan 0.05 0.05 0.09 4
Spain 1.38 1.57 1.43 -14
Switzerland -0.19 -0.15 0.11 26
UK 1.24 1.19 1.51 32
Emerging Market
Brazil 11.40 10.26 9.72 -54
China 3.03 3.88 3.91 3
India 6.52 7.33 7.43 10
Indonesia 7.91 6.29 6.24 -5
Korea 2.07 2.47 2.78 31
Malaysia 4.19 3.91 3.95 4
Philippines 4.64 4.93 4.93 0
Russia 8.36 7.49 7.24 -25
Taiwan 1.20 1.03 0.97 -6
Thailand 2.65 2.32 2.35 2
Bond yields rose across most global markets
India Rates Snapshot for January 2018
Source: Bloomberg, PPAC, CCIL, SBIMF Research; NB: **Crude oil price is average $/barrel for the month, rest of the data are % month end; *Corporate bond rate is for AAA rated bonds ,*** Refers to PSU Banks CD rate; # INR and Oil price changes are % change
Rates across the yield curve and across the securities have risen in January 2018
Nov-17 Dec-17 Jan-18 m-o-m change (in bps)
1 Yr T-Bill 6.27 6.40 6.55 15
3M T-Bill 6.12 6.20 6.40 20
10 year GSec 7.06 7.33 7.43 10
3M CD*** 6.22 6.38 7.20 82
12M CD*** 6.63 6.75 7.45 70
3 Yr Corp Bond* 7.30 7.66 7.68 2
5 Yr Corp Bond* 7.45 7.68 7.88 20
10 Yr Corp Bond* 7.84 7.90 8.11 21
1 Yr IRS 6.30 6.44 6.48 4
5 Yr IRS 6.58 6.75 6.77 1
Overnight MIBOR Rate 6.00 6.20 6.00 -20
INR/USD 64.5 63.9 63.6 0.4#
Crude Oil Indian Basket** 61.3 62.3 67.1 7.7#
India 10 year G-sec yields are rising
Source: Bloomberg, SBIMF Research,
Factors driving the yields movement• Higher than expected fiscal deficit for FY19 • Inflation bottoming out in India. On top of that measures such as re-calibration of MSP, higher import duty on
certain agri-products were perceived as inflationary• RBI Policy stance: RBI is committed to keep inflation anchored around 4% • Hardening crude prices• Deteriorating G-sec demand-supply dynamics• Exhaustion of FPI debt limits• Global factors: Gradual rise in global policy rates along with liquidity tightening
Bond yields moved up by 18 bps on the budget day. Yields has risen by 28bps on YTD basis
7.10
7.20
7.30
7.40
7.50
7.60
7.70
India 10 year G-sec yield (In %)
Yield curve has risen in January 2018
Source: Bloomberg, SBIMF Research
Yields have risen across the curve in January; yields steepened right after the budget
6.00
6.20
6.40
6.60
6.80
7.00
7.20
7.40
7.60
7.80
8.00
3 M
onth
1 Ye
ar
2 Ye
ar
3 Ye
ar
4 Ye
ar
5 Ye
ar
6 Ye
ar
7 Ye
ar
8 Ye
ar
9 Ye
ar
10 Y
ear
01-Jan-18 31-Jan-18 01-Feb-18
India growth-inflation mix warrants an unchanged policy rate in 2018
Source: CMIE economic outlook, CSO, SBIMF Research
Inflation is bottoming out but to stay contained…
Risks to Inflation:• Rising commodity prices particularly crude prices• Exceptionally low food inflation leads to a risk of some mean-reversal• Rising share of revenue expenditure in government spending• Sharp growth rebound leading to higher corporate pricing power
.. And growth is expected to recover marginally
5.5
6.4
7.58.0
7.1
6.0
7.2 7.6
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
FY13 FY14 FY15 FY16 FY17 1H FY18 2H FY18e FY19e
Real GDP
% growthFY18: 6.7%
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Ap
r-1
2
Jul-
12
Oct-
12
Jan
-13
Ap
r-1
3
Jul-
13
Oct-
13
Jan
-14
Ap
r-1
4
Jul-
14
Oct-
14
Jan
-15
Ap
r-1
5
Jul-
15
Oct-
15
Jan
-16
Ap
r-1
6
Jul-
16
Oct-
16
Jan
-17
Ap
r-1
7
Jul-
17
Oct-
17
CPI % y-o-y
CPI target range 4% + 2%
Risk from rising crude prices
Source: PPAC, SBIMF Research
0.9 0.9
1.1 1.1 1.2 1.3 1.3 1.3
1.4 1.5 1.5
1.6
-
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E
Crude Import (billion barrel)
India crude import is rising at a CAGR of 6% in last 10 years Every US$ 10 rise in crude price increases CAD by ~US$ 16 billion…
9.511.0
13.315.4
17.519.1 19.4 19.7
21.519.5
3.65.0 6.0
8.010.3 10.7 11.8
13.8
17.315.3
0.0
5.0
10.0
15.0
20.0
25.0
Prio
r to
12
Nov
201
4
12-N
ov-1
4
02-D
ec-1
4
01-J
an-1
5
16-J
an-1
5
07-N
ov-1
5
16-D
ec-1
5
02-J
an-1
6
01-F
eb-1
6
03-O
ct-1
7
Petrol Diesel
Excise (Rs./ litre)
Rising Crude prices may lead centre to cut excise duty. Every 1 re cut leads to an annual excise revenue loss of Rs. 130 billion
Banking system indicators
Source: RBI, SBIMF Research
The situation of abnormal surplus liquidity (seen post demonetization) should fade away in 2018…
-4000
-2000
0
2000
4000
6000
8000
10000
Sep-
15O
ct-1
5N
ov-1
5D
ec-1
5Ja
n-16
Feb-
16M
ar-1
6A
pr-1
6M
ay-1
6Ju
n-16
Jul-1
6A
ug-1
6Se
p-16
Oct
-16
Nov
-16
Dec
-16
Jan-
17Fe
b-17
Mar
-17
Apr
-17
May
-17
Jun-
17Ju
l-17
Aug
-17
Sep-
17O
ct-1
7N
ov-1
7D
ec-1
7
Banking System Liquidity (Rs. Billion)
2.04.06.08.0
10.012.014.016.018.020.0
Jan/
13
May
/13
Sep/
13
Jan/
14
May
/14
Sep/
14
Jan/
15
May
/15
Sep/
15
Jan/
16
May
/16
Sep/
16
Jan/
17
May
/17
Sep/
17
Bank Deposit (% y-o-y) Bank Credit (% y-o-y)
… But credit growth could outpace deposit growth…
… and affect Banks’ appetite for Government securities
19.0 21.0 23.0 25.0 27.0 29.0 31.0 33.0
Apr
-11
Aug
-11
Dec
-11
Apr
-12
Aug
-12
Dec
-12
Apr
-13
Aug
-13
Dec
-13
Apr
-14
Aug
-14
Dec
-14
Apr
-15
Aug
-15
Dec
-15
Apr
-16
Aug
-16
Dec
-16
Apr
-17
Aug
-17
Dec
-17
Actual SLR Holdings of Bank (in %)
Required SLR Holdings by RBI (in%)
• Banks current SLR holding is 9% more than themandated norms
• Any pick-up in credit demand, if unmatched byparallel growth in deposit base, could reduce banks’appetite for Government securities
We see a hump shaped headline CPI trajectory in 2018 with CPIlikely to go to 6% by June 2018 and then taper off in 2H FY19.Although headline CPI is expected to be above RBI’s mediumterm target (4%) for most of 2018, it should be well within thetolerable limit of 4 – 6% and the expected real policy rate.
There are upside risks to Inflation emerging from a) risingcommodity prices particularly crude prices, b) exceptionally lowfood inflation leads to a risk of some mean-reversal, c) risingshare of revenue expenditure in government spending, and d)Sharp growth rebound leading to higher corporate pricing power.
RBI need not be in a hurry to tighten monetary policy despite therising inflation as the growth recovery in India is still nascent andthe overall actual growth till date is still weak (CSO just pareddown FY18 growth to 6.5%- lowest in last four years).
Further, as the recapitalization exercise has just begun, any rushto the rate hiking will be counter-productive and inhibit themonetary policy transmission.
Risks to our call emerges from a) growth improves faster than ourcurrent expectations or b) global monetary policy normalizationexposes any weakness in India’s external balance. In that casethe RBI MPC could act early.
Policy Rate Outlook
Source: RBI, SBIFM Research
4.00
5.00
6.00
7.00
8.00
9.00
10.00
Nov
-05
Aug
-06
May
-07
Feb-
08
Nov
-08
Aug
-09
May
-10
Feb-
11
Nov
-11
Aug
-12
May
-13
Feb-
14
Nov
-14
Aug
-15
May
-16
Feb-
17
Repo Rate (mth end, %)
Repo rate to stay unchanged in 2018
Budget slipped on the fiscal deficit target but printed a lower thanexpected market borrowing.
Despite the headline commitment to fiscal consolidation and lowerthan expected gross market borrowings, bond market sold off. 10year G-sec yield rose by 18 bps to 7.60%, suggesting the likelyconcern on MSP-hikes pushing inflation expectations higher andpossible change in RBI’s stance. Rising global bond yields andcrude oil prices are also weighing on the sentiments.
While the budget opens the door for large MSP revision, theeventual inflationary and fiscal impact will depend on themethodology for measuring the cost of production. A cursory studyof the current price setting mechanism suggests that most agri-products are already witnessing an MSP of nearly 1.5x of theirproduction cost.
The imposition of LTCG tax on equities and increased income taxexemption for senior citizens may attract more funds in the fixedincome space. However, one also needs to take cognizance of theincreased borrowings through public sector enterprises. Further theexpected credit recovery can reduce the banks’ appetite forgovernment bonds. Banks’ holding of G-Sec is already well abovethe SLR level and foreign investor limit on government securities isnearly used up. However, with increased penetration of insuranceand pension sector, one needs to keenly watch their demand forbonds. We believe, investor should build exposure gradually asbond yields are entering in an attractive zone.
.
Debt Market Outlook
Source: Bloomberg, SBIFM Research
Valuations look attractive at G-sec vs. Repo rate spread of 160 bps (as of 2nd Feb)
6.006.507.007.508.008.509.009.50
Jan-
11
Jun-
11
Nov
-11
Apr
-12
Sep-
12
Feb-
13
Jul-1
3
Dec
-13
May
-14
Oct
-14
Mar
-15
Aug
-15
Jan-
16
Jun-
16
Nov
-16
Apr
-17
Sep-
17
10 year GSec yield (mth end, %)
Repo Rate (mth end, %)
Thank you
Disclaimer
This presentation is for information purposes only and is not an offer to sell or a solicitation to buy anymutual fund units/securities. These views alone are not sufficient and should not be used for thedevelopment or implementation of an investment strategy. It should not be construed as investmentadvice to any party. All opinions and estimates included here constitute our view as of this date and aresubject to change without notice. Neither SBI Funds Management Private Limited, nor any personconnected with it, accepts any liability arising from the use of this information. The recipient of thismaterial should rely on their investigations and take their own professional advice.
Mutual Funds investments are subject to market risks, read all scheme related documentscarefully.
Asset Management Company: SBI Funds Management Private Limited (A joint venture with SBI andAMUNDI). Trustee Company: SBI Mutual Fund Trustee Company Private Limited.
Contact Details
SBI Funds Management Private Limited
(A joint venture between SBI and AMUNDI)
Corporate Office:9th Floor, Crescenzo, C-38 & 39, G Block,Bandra Kurla Complex,Bandra (East), Mumbai - 400 051Tel: +91 22 6179 3000Fax: +91 22 6742 5687/88/89/90/91Website: www.sbimf.com
Call: 1800 425 5425
Visit us @ www.youtube.com/user/sbimutualfund
SMS: “SBIMF” to 56161
Email: [email protected]
Visit us @ www.facebook.com/SBIMF