Investime Apr 2017 - Aditya Birla Group - April...The FII flows have changed its course in the last...

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02017VOL XIV • ISSUE • April `•0

April 2017

4

CONTENTS

01 EDITORIAL

02 EQUITY MARKET OVERVIEW

03 DEBT MARKET OVERVIEW

04 MACRO DEVELOPMENTS - GLOBAL

05 MACRO DEVELOPMENTS - INDIA

06 FIXED INCOME

08 EQUITY MARKETS

12 COMMODITIES AND CURRENCY MARKETS

14 CORE RECOMMENDED FUNDS - EQUITY

17 CORE RECOMMENDED FUNDS - DEBT

23 SATELLITE FUNDS

24 MACRO INDICATORS

26 OTHER OFFERINGS

27 RISKOMETER

28 DISCLAIMER

EDITORIAL

01April 2017 Investime

As we enter into a new financial year, India remains to be a bright spot among the global investors. Equity markets are scaling new highs backed by high pace growth oriented reforms by the government, a strong mandate for the BJP in the recently concluded state elections, etc. By the end of March, the government of India has achieved a milestone in the proposed GST with Lok Sabha approving four bills thereby taking GST closer to reality. GST is expected to be introduced from July 1 which would bring-in one-tax system throughout the country. This would not only be an achievement for the government, but also will bolster global investors’ confidence on India. The FII flows have changed its course in the last two months. From October 2016 till January 2017, FIIs have been net sellers of Indian equity and debt markets. The trend has just reversed in the last two months with approximate net FII inflows of Rs. 30,000 Crs and Rs 26,000 Crs into Indian equity and debt markets respectively in the month of march 2017 alone.

On the global front, policy uncertainties again took the centre stage. U.S administration faced a major setback due to the failure of the republicans to win conservative Freedom Caucus votes before a House vote on the AHCA (The American Health Care Act: the Republicans’ bill to replace Obamacare). This failure has created a sense of uncertainty over Mr. Trumps’ upcoming tax reforms. Markets would be eager to see how the tax reforms would be implemented which would win back global investor’s confidence on U.S government’s ability to implement path breaking reforms as promised during the U.S. Presidential elections. Trade tension s between U.S. and China have peaked in the month of March. But with a proposed 100 day plan, US and China seems to have come to a consensus to ease immediate trade tensions.

Gold in the last quarter of 2016-17 closed in positive mainly due to weaker dollar, political uncertainty triggered by BREXIT, elections in the European Union, uncertain policies of U.S. government, etc. The precious metal witnessed high volatility in March, with prices dropping heavily in the first half of the month and then recovering fully towards the close of the month and settling strong - making a good case for further gains in the near-month.

Indian Rupee continued its winning streak outperforming its Asian peers touching almost 17-months high against the US Dollar in March. Improving macroeconomic picture, BJPs historic win in the state elections, etc on the domestic front and dovish rate hike stance by the U.S Fed, policy uncertainty in the U.S on the global front have fuelled this strengthening of Indian rupee.

Overall, we remain constructive on the Indian markets from a medium to long term perspective. Stepping into the new financial year, Q4 earnings and GST roll out would be some of the key events which might trigger a rally in the Indian equity markets going ahead.

Bhavesh SanghviExecutive Vice President & Head - Wealth ManagementAditya Birla Finance LimitedGuest Editor

Indian equity markets which had corrected significantly post the Government’s demonetization initiative in November have seen a sharp rebound since the start of the current calendar year. There are couple of factors which have led this ~16% upmove in Nifty 50 index since December 26 lows. Liquidity, with domestic buying supporting the market in January and FII turning buyers since Feb, has been the single biggest contributor to the current rally. Election victory by BJP in key states and a sanguine budget also helped boost the positive sentiment while Nifty earnings for December quarter grew by 12.5% which alluded to the uptick in earnings that has remained elusive for the last 3 years.

Inflation expectations in India have bottomed out and we should see pick up inflation going forward. Inflation boosts nominal GDP which should result in higher earnings growth especially for Consumer facing sectors going forward. Every year, consensus earnings growth estimates since FY 14 have been downgraded. Between FY15 and FY17, earnings were impacted by several factors – asset quality review of banks, correction in commodity prices, slowdown in discretionary consumption, and demonetization. The slope of downgrades in FY 17 has been flatter than previous years; indicating a bottoming of earnings.

The anticipation of recovery continues with the consensus expecting Nifty earnings to grow at 18% CAGR for the next 2 years. Double digit nominal GDP growth rate should aid the earnings growth with corporate lenders, commodities and consumer discretionary contributing to the bulk of this growth with IT, telecom and energy to be laggards.

Domestic flows have continued unabated which has been a strong support with mid and small cap oriented funds garnering a higher share of inflows. With earnings growing at a halting pace, the steady inflows have led to a surge in valuations across market cap segments. For the last couple of years, DII inflows have exceeded FII inflows in the Equity Market. Thus valuations look optically expensive as inflows have pushed up stock prices while earnings have remained flat. With a strong recovery in earnings, valuations would look much more sanguine than what they currently are. 02

Even globally, Indian markets outperformed on YTD basis with 16.5% return of BSE Sensex 30 compared to 4.8% of developed markets and 14.5% of emerging markets. Global markets as well, have rallied this year – US driven by Trump rally and Europe on expectations of visibility of green shoots of growth. US stocks crossed an all-time high of 21k with the fastest 1,000 point gain of all time which happened in a matter of just 24 trading days.

2017 as a year will see return of inflation across developed markets as well. Globally interest rates are bottoming out and we saw Fed hiking its interest rate in March. After the strength seen in the Dollar for the last couple of years, dollar depreciated 3.2% from the highs seen in December 2016 as people build in higher interest rates in US. Weak dollar is good news for emerging markets as it results in increased Foreign Institutional Investors (FII) flows.

To sum it all up, earnings will remain the bedrock over which we can see the Indian markets scaling new highs. Notwithstanding volatility due to higher interest rates and geo-political risks in Europe, stronger domestic and FII flows and a more decisive push of savings towards financial instruments rather than real estate and gold, equity is an asset class which one should not miss from a medium to long term perspective.

Gradient of market is higher in emerging markets like India as compared to flat in developed market like Japan. With a flat gradient it is the timing of entering the market that makes a difference while for markets like India, it is not the timing but the duration of remaining invested that matters. Thus, one should remain invested and not be much concerned about the timing to end up making superior returns in the longer term.

April 2017 Investime

Mr. Anoop Bhaskar – Head – Equities, IDFC Asset Management Company Ltd.

EQUITY OVERVIEW

MARKET

Chart1: PAT growth for Nifty 50 companies clearly looks like bottoming out with a double digit growth after 13 quarters

PAT growth for Nifty 50 companies21.0%

7.9%

3.3% 4.8%

-2.1%

7.0%

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Sensex Index (LHS) DXY Currency (RHS)

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1051031019997959391898785

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17Source: BloombergChart 2 : Direction of Dollar influences market direction. As can be seen above, a weak dollar is good for equity markets and vice versa


DEBT MARKET OVERVIEW

Mr. Kumaresh Ramakrishnan, Head-Fixed Income , DHFL Pramerica Asset Managers Private LimitedBenchmark G-sec yields after witnessing a strong reversal post the February policy stabilised in the early part of March’17. Post the State election results in March, wherein the ruling BJP government secured a huge victory, fixed income markets have witnessed a strong momentum, driven by strong foreign inflows.

For the month of March alone, FPI inflows aggregated USD 8.5 billion (combined debt and equity). This has surpassed the USD 7.2 billion inflow into the Indian markets witnessed in September 2007, the highest so far.

In CYTD (2017), the debt inflows at the end of March stood at USD 4.4 billion (full year outflows of USD 6.45 billion seen in CY16). Strong inflows into debt in the current calendar year were helped by a strengthening rupee. The INR appreciated by 5.1% in the Jan to March quarter. The INR appreciation in turn was helped by favourable CAD data for the third quarter and strong foreign flows in debt and equity. Full year FY17 CAD is forecast to remain within a band of 0.7-0.8% of GDP.

The benchmark Govt bond yields have also been helped by soft commodity prices led by oil. After hovering around USD 55-58/ bbl, crude has now softened to USD 50-52 / bbl. The near term prospects for crude indicate a sub USD 60 range.

Domestic macro in general has been favourable reflected in all the key metrics such as CPI, CAD, GDP and liquidity. CPI after witnessing a falling trend has now started reversing marginally. WPI for February came in at 6.55% while CPI was at 3.65%. Food inflation which remained benign in the

winter months is likely to start moving higher with the advent of the summer months. Given the large weightage for food in CPI, the headline number could move higher in the coming months, although stable fuel prices and the latest fuel price cuts will moderate the impact.

The last two quarters of the financial year FY2017 also witnessed the impact of demonetisation. With the re-monetisation underway now, growth is expected to revive in the coming quarters. As such FY18 should represent high overall growth compared to FY17. However, since GST is proposed to be implemented mid-way through the year, any impact of GST roll-out on growth, during the initial period of implementation will need to be monitored closely.

Even as the domestic macro remains comfortable, RBI at the previous policy changed its stance to move away from ‘accommodative’ to ‘neutral’. The alteration in stance, effectively offers RBI the flexibility to act in either of three ways depending upon potential macro developments. At the February policy, RBI also indicated that they plan to move to a 4% durable CPI target. Even as CPI is currently below the 4% target level, it has been seen that CPI tends to volatile, impacted by seasonality from time to time, causing the headline readings to move in a reasonably wider band.

The decision to moderate inflation (CPI) on a sustainable basis, implies that the head room for rate easing is expected to remain rather limited even as the macro picture remains stable and reflects improving overall metrics. In the medium term, we expect that G sec yields will remain impacted not only by domestic macro but by external factors such as US fed rate hikes, crude oil prices and the general environment for interest rates globally. On balance, even as the tailwind of liquidity and improvement in macro parameters are expected to continue, we believe that RBI is expected to retain a cautious stance going ahead.

10 year G-Sec

66.26.46.66.8

77.27.47.67.8

8

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INR

Cror

es

Debt -FII / FPI Flows-INR Crores

4.875.01

5.4

3.69 3.74

4.41

5

5.415.61 5.69

5.26

4.83

5.47

5.76 5.77

6.07

5.05

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3.633.41

3.17

3.65

3

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4

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5

5.5

6

6.5

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India CPI

MACRO DEVELOPMENTS - GLOBAL

US

Eurozone

In the month of March, the ISM Manufacturing Purchasing Managers Index (PMI) dipped down to 57.2 from 57.7 in February majorly due to slowing output (but still managed to beat market expectations of a steeper fall).Consumer confidence index continued to improve as it jumped to 125.6 in March (16 year high), against analysts expectations of a slight dip. U.S. inflation is one of the key measures which is closely being tracked by the U.S. Fed when weighing interest-rate moves. The headline U.S. index of personal consumption expenditures (PCE) rose by 2.1% year-over-year in February crossing the U.S. Fed target levels of 2%. But the core PCE inflation, rose to 1.8% which is still below the target. After a flying start in 2017, the U.S. job market data for the month of march has been depressing. In CY2017, 236,500 jobs have been added on an average every month. But in the month of march only 98,000 jobs have been added compared to earlier two months in CY17. In addition to this, the total nonfarm payroll employment for January was revised down from +238,000 to +216,000, and the change for February was revised down from +235,000 to +219,000. With these revisions, employment gains in January and February combined were 38,000 less than previously reported. This may pose a risk to Mr.Donald Trump’s promise of bringing back more jobs.. However, the overall unemployment rate marginally declined to 4.5%. Meanwhil one of the major setbacks for Mr.Donald Trump’s administration has been the failure of the republicans to win conservative Freedom Caucus votes before a House vote on the AHCA. This failure has created a sense of uncertainty over Mr.Trumps’ upcoming tax reforms. Markets are eagerly waiting to see how the tax reforms would be implemented which would win back the global investor’s confidence on U.S government’s ability to implement path breaking reforms.

The eurozone economic activity seems to be robust. The Markit Eurozone manufacturing PMI for the month of March rose to 56.2 compared to 55.4 in the month of February. EU’s biggest economies France and Germany accounted for bulk of this growth (almost 0.6% growth from both these economies). The euro area (EA19) seasonally-adjusted unemployment rate came in at 9.5% in February 2017, down from 9.6% in January 2017 and

from 10.3% in February 2016. Eurozone inflation fell sharply in the month of March to 1.5% compared to February’s reading of 2% (ECB’s target) . This is well below European Central Bank's target thereby raising new questions on the success of ECB in boosting inflation. This also makes a strong case for continuing ECB’s ongoing Quantitative Easing (QE) program. Since few months, eurozone’s strong member nation Germany has been emphasising on either stopping or tapering the ongoing QE. But Mr.Mario Draghi was unconvinced that higher inflation was here to stay and that the QE has to continue. He also stated that beating low inflation was a gradual process.

In the month of March, China's factory activity inched up to its highest level in five years signalling that the economy is picking up steam. The manufacturing Purchasing Managers’ Index (PMI) rose to 51.8% in the month of March compared to 51.6 in February. China’s exports declined in the month of February by 1.3% y-oy following a 7.9% rise seen in January. Considering the first two months of CY2017, exports rose 4.0% compared to the same period a year earlier. China’s Industrial production rose 6.3% y-o-y in January-February of 2017, compared to a 6% rise in December. Amid increasing tensions between Washington and Beijing over economic and security matters, there seems to be a consensus between US and China as they agree to a mechanism to ease immediate trade tensions. The Chinese delegation is believed to have proposed a 100-day plan to address key bilateral trade issues which include allowing increased overseas investment in the domestic financial sector and also easing of Beijing’s restrictions on imports. Although this might give some respite to both China and the U.S., there will still be concerns lingering if little is achieved during the 100-day negotiation period, especially when U.S is likely to take a tougher stance and direct action against China. Markit’s headline Nikkei Japan Composite Output Index, rose to 52.9 in March compared to 52.2 in February signalling at strong monthly expansion of business activity. The Nikkei Japan Manufacturing PMI fell to 52.4 in March of 2017, compared to 53.3 in February marking a lowest reading since December 2016. The Nikkei Services PMI in Japan rose to 52.9 in March of 2017 from 51.3 in February marking a sixth straight month of expansion. Overall, Japan's economy seems to be heading into the second quarter in a relatively good shape.

Asia


MACRO DEVELOPMENTS - INDIA

INDIAN MACRO-ECONOMY

Fiscal deficit from Apr’16 to Feb’17 fiscal deficit stood at Rs. 6.05 lakh crores which is 113.4% of Rs. 5.34 lakh crores (the budgeted estimates (BE) for FY17). Total receipts from revenue and non-debt capital stood at Rs. 11.47 lakh crores (~77.5% of BE) while total expenditure was at Rs. 17.53 lakh crores (87% of BE). In the corresponding period in 2015-16 fiscal deficit had surpassed BE by 107.1%. Total Investments by FIIs (Foreign Institutional Investors) into Indian equity and bond markets for the month of March were highest in about 15 years. They have made investments worth ~Rs. 59,876 Crs for the month and are likely to continue as foreign investors remain bullish on India due to strong domestic fundamentals.

IIP bounced back in January 2017 expanding by 2.74% after contraction of 0.11% seen in December due to improved performance in capital goods segment (a barometer of investment demand in the economy). Expansion was broad-based as indices of industrial production for mining, manufacturing and electricity sectors posted growth rates of 5.26%, 2.26% and 3.88% respectively. Out of twenty two industries within manufacturing, nine showed positive growth in Jan 2017.Under use based classification, capital goods showed strong revival and grew by 10.65% in Jan 2017 as against

contraction of 3.87% in the previous month. Consumer goods segment contracted by 0.99% due to sharp fall in consumer non-durable goods production. Basic goods production showed expansion of 5.26%, however intermediate goods category contracted by 2.27%. Cumulative growth in IIP for April 2016-Jan 2017 was 0.56%, much lower than 2.70% seen in the same period a year ago. Core sector which has 38% weightage in the IIP slowed to over one year low of 1.07% in February 2017 compared to 3.40% in January 2017 due to contraction seen in crude oil, natural gas, refinery, fertilizers and cement production.

CPI headline inflation rose to 3.65% (3-month high) in February 2017 from an all time low in January 2017 due to rising food and fuel prices. Food inflation, which constitutes around 39% of the overall index rose to 2.01% in February from 0.61% in the previous month. Core inflation which excludes food and fuel eased a bit and came in at 4.86% vs 5.08% previously. WPI Inflation jumped to a 39-month high of 6.55% in Feb 2017 compared to 5.25% previously.

According to the data released by the commerce ministry, exports grew 17.48% to USD 24.5 billion while imports rose 21.76% to USD 33.4 billion in February which lead to a trade deficit of USD 8.9 billion (lowest in five months). Exports increased due to higher shipments of engineering goods and petroleum products while imports went up due to surge in gold and oil imports. India in the first 11 months of the FY17 exported USD 245.4 billion worth of goods, up 2.5% from a year ago, while imports fell 3.7% to USD 340.7 billion, leaving a deficit of USD 95.3 billion.


Source: CMIE

Sector-WiseMining 5.26 5.46 1.54 14.16Manufacturing 2.26 -1.66 -2.94 75.53Electricity 3.88 6.28 6.56 10.32Use based classification 100.00Basic goods 5.26 5.52 1.94 45.69Capital goods 10.65 -3.87 -21-55 8.83Intermediate goods -2.27 -1.30 2.84 15.69Consumer goods -0.99 -5.99 -0.10 29.81Consumer durables 2.92 -8.91 5.64 8.46Consumer non-durables -3.19 -4.42 -3.19 21.35IIP 2.74 -0.11 -1.59 100.00

Categories Jan-17 Dec-16 Jan-16 Weight

IIP - SECTOR WISE GROWTH RATE (%)

Source: CMIE

Coal 7.09 4.79 3.31 4.38Crude oil (3.42) 1.31 0.79 5.22Natural gas (1.65) 11.89 1.25 1.71Refinery products (2.34) (1.48) 10.90 5.94Fertilizers (5.29) (1.57) 18.26 1.25Steel 8.66 11.40 6.09 6.68Cement (15.83) (13.28) 13.47 2.41Electricity 1.51 4.82 15.73 10.32Core Sector 1.07 3.40 9.39 37.90

Categories Feb-17 Jan-17 Feb-16 Weight

Core Sector Growth Rate (%)

2.61 1.75 2.32 0.61 2.46 1.37 45.86

6.85 7.11 4.50 4.37 6.18 6.36 2.38

5.10 5.58 3.19 3.28 4.38 4.71 6.53

6.85 7.11 4.90 5.02 4.90 5.02 10.074.47 4.68 2.76 0.94 3.90 3.34 6.84

5.05 5.41 4.44 4.54 4.79 4.98 28.323.67 3.36 3.55 2.90 3.65 3.17 100.00

CPI RURAL, URBAN AND COMBINED (%)

Source: CMIE

Feb-17Rural Urban

WeightCombined

Food andBeveragesPan, Tobacco andIntoxicantsClothing & FootwearHousing Fuel & Light MiscellaneousHeadline

Jan-17 Jan-17 Jan-17Feb-17 Feb-17

Source: CMIE

CPI (%) Food Inflation (%) Core Inflation (%)

0.001.002.003.004.005.006.007.008.009.00

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FIXED INCOME - GLOBAL

US 10 Yr benchmark yields was hovering around 2.46 levels surged to 2.62 levels by 13th March. But from March 13, 2017 till almost the month end, yields have moved downwards majorly due to the failure of President Donald Trump’s healthcare policy implementation. US Treasuries are considered safe havens, and they’re the preferred investment option during times of economic uncertainty. In the medium-term, there could be some ongoing pressures like uncertainty surrounding the French presidential election, growing tensions over North korea, trade tensions between U.S and China, etc. which may keep yields relatively low.

Japan’s 10 Yr benchmark yields moved to 0.07 levels by the end of march compared to 0.05 levels of February 2017. The Bank of Japan (BOJ) has decided to leave the frequency of its government bond purchases in April unchanged from March indicating that there may not be any need to guide any bond yields higher or lower. BOJ also stated that it will lower the range of purchase plans for the short end of the JGB yield curve in April, following the decision by the Ministry of Finance to reduce the issuance of 2- and 5-year JGBs in fiscal 2017. For fiscal 2017, the per-auction issuance may fall to 2.2 trillion Yen for 2-year JGBs (2.3 trillion Yen in fiscal 2016) and drop to 2.2 trillion Yen for 5-year debt (2.4 trillion Yen in FY16).

FIXED INCOME


10 YEAR BENCHMARK YIELDS [%]

Date/Countries

US 2.40 2.50 2.36 2.50 2.45 2.38 2.43 2.58UK 1.14 1.21 1.15 1.30 1.42 1.31 1.24 1.49Japan 0.07 0.10 0.05 0.09 0.09 0.05 0.05 0.08Spain 1.66 1.83 1.66 1.68 1.59 1.43 1.39 1.42Germany 0.33 0.41 0.21 0.38 0.44 0.33 0.21 0.36France 0.96 1.04 0.89 1.06 1.04 0.80 0.68 0.78Italy 2.31 2.28 2.09 2.25 2.27 1.91 1.83 1.84Brazil 10.11 10.29 10.25 10.36 10.94 11.02 11.46 12.07China 3.31 3.39 3.36 3.45 3.36 3.23 3.07 3.23India 6.69 6.83 6.87 6.86 6.41 6.44 6.52 6.54

Source: Thomson Reuters

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FIXED INCOME - INDIA

The month of March began with global markets anticipating an eminent rate hike by the U.S Fed during the FOMC meet of 14-15 March. This anticipation was fueled by hawkish comments from Fed officials including the chairperson Janet Yellen who stated in early March that rising core inflation, improving labour market data and increasing consumer spending augurs well for a rate hike. The U.S Fed hiked rates by 25bps during the FOMC meet, in line with market expectations. Although the U.S Fed stated that further rate hikes were on the cards, the global markets were assured that the pace of future rate hikes would be gradual. The Fed has indicated a possibility of two more rate hikes during CY17 and three during CY18 whereby they intend to increase rates up to 3% levels by end of 2019.

With the assurance of U.S Fed on a gradual pace of future rate hikes, Foreign Institutional Investors (FIIs) who have been skeptical about investing in emerging markets due to global uncertainties invested over INR 26,000 Crores in Indian debt market in the month of March. This led to a sharp decline in yields and strengthening of Indian Rupee against the US Dollar due to rising demand for the former. The benchmark 10 year G-sec yield declined from 6.90 levels (on 14th March) to 6.69 levels on 31st March thus softening by 21bps. Liquidity in the banking system continues to remain in surplus post demonetization. Banking system is flushed with liquidity to the extent of over INR 4 Trillion. This has led to a decline in yields across maturities. The 3M CD and

CD Rates [%]


5.505.756.006.256.506.757.007.257.507.758.00

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07

FIXED INCOME


CP yields declined by 11bps and 23bps respectively while the 1 Year CP yields declined by 10bps and the 1 year CD yield ended marginally higher by 1bp in March. The 91 day T-bill yield declined by 33bps while the 364 Days T-bill yield softened by 11 bps during the month to end at 5.78% and 6.10% respectively. The liquidity situation is expected to remain in surplus during the year and measures to reduce the surplus liquidity would come into effect gradually. During the April monetary policy, the RBI MPC has laid down the roadmap for bringing liquidity to neutrality from the current surplus levels. The RBI may also adopt measures like auctions of longer maturity reverse repo to reduce the surplus liquidity. Market Stabilisation Scheme, sale of securities under Open Market Operations and issuance of Cash Management Bills may be used to bring liquidity to neutral level.

The RBI MPC maintained the Repo rate unchanged at 6.25% during the policy meet in April. However, the Reverse Repo rate was hiked by 25bps from 5.75% to 6%. The MSF and Bank Rate have been revised to 6.50%. The monetary policy stance has been maintained as ‘neutral’ with medium term target for CPI at 4% (+/-2%). With this move, the RBI intends to bring the Weighted Average Call Rate (WACR) near the repo rate, thus bringing the liquidity in the banking system to neutrality. The debt market perceived the move as hawkish and reacted with hardening of the benchmark 10 year G-Sec from 6.65% to 6.74% post the policy announcement. RBI governor, Dr Urjit Patel stated that the direction of future monetary policy decisions would be dependent on macro economic dat.

RBI estimates CPI to undershoot the target of 5% for Q4 FY17. For FY18, CPI is projected at 4.5% during the first half of the year and 5% during the second half. With agricultural commodities forming 41% of the CPI basket,

a below average monsoon during the year could lead to rise in food inflation. However, with record production of food grains and supply management efforts of the government, the risks of rising food inflation can be mitigated. Increase in house rent allowance under the 7th Pay commission, waiver of farm loans by the newly elected government in Uttar Pradesh and the near to medium term impact of GST also may pose upside risks to CPI over the next 12 to 18 months period. However, the decline in crude oil price during March should have a favorable impact on CPI. Rising output and inventories in the U.S in spite of production cuts by OPEC are expected to keep crude prices under check, thereby improving the outlook for CPI.

The spread between the Indian 10 year benchmark yield and US 10 year treasury yield has contracted from 562bps in April 2016 to 427bps in March 2017, thus declining by 135bps over the past 12 months. With the U.S Fed indicating further rate hikes over the next 2 years, the spread between the benchmark yields may contract further. Thus, in order to maintain the spreads and real interest rates at levels which attract FII inflows into India, the RBI can adopt a hawkish stance especially in the H2 FY18 post implementation of GST when service inflation is expected to rise. Moreover, a below average monsoon also poses an upside risk to inflation since agricultural products make up to 41% of the CPI basket.

With RBI MPC maintaining its neutral stance on monetary policy almost indicating an end to near term monetary easing cycle and U.S Fed expected rate hikes during the year, longer maturity bond yields may harden going ahead. The hiking of reverse repo rate by 25bps and gradually brining the weighted average call rate near the policy rate may benefit Liquid and Ultra Short Term Funds which invest in money market instruments like T-Bills, Commercial Papers and Certificate of Deposits. Our stance on duration funds is “Underweight” and we do not advice any fresh exposure to long duration funds (like Income, Dynamic Bond Funds and Gilt Funds). Investors may consider partial profit booking in such funds thereby reducing their overall exposure to these funds (especially if they have completed 3 years of holding). We continue to prefer the shorter end of the curve. Investors can consider investing into Ultra Short Term Funds, Short Term Funds and Accrual/Credit Opportunities funds depending on their investment horizon and risk profile.

AAA Corporate Bond Yields [%]


1Y AAA 3Y AAA 5Y AAA 10Y AAA

AA Corporate Bond Yields [%]


1Y AAA 3Y AAA 5Y AAA 10Y AAA

6.506.757.007.257.507.758.008.258.508.75

3-Au

g-16

18-A

ug-1

6

2-Se

p-16

17-S

ep-1

6

2-O

ct-1

6

17-O

ct-1

6

1-N

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6

16-N

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6

1-D

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6

16-D

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31-D

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15-J

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7

30-J

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7

14-F

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7

1-M

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7

16-M

ar-1

7

31-M

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7

6.807.057.307.557.808.058.308.558.809.059.30

3-Au

g-16

18-A

ug-1

6

2-Se

p-16

17-S

ep-1

6

2-O

ct-1

6

17-O

ct-1

6

1-N

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6

16-N

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6

1-D

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6

16-D

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6

31-D

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6

15-J

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7

30-J

an-1

7

14-F

eb-1

7

1-M

ar-1

7

16-M

ar-1

7

31-M

ar-1

7

G- Secs [%]


1Y G-Sec 3Y G-Sec 5Y G-Sec 10Y G-Sec

5.80

6.056.30

6.556.80

7.057.30

7.557.80

3-Au

g-16

18-A

ug-1

6

2-Se

p-16

17-S

ep-1

6

2-O

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6

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16-N

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6

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6

16-D

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6

31-D

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15-J

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7

30-J

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7

14-F

eb-1

7

1-M

ar-1

7

16-M

ar-1

7

31-M

ar-1

7

08

EQUITY MARKETS

EQUITY - GLOBAL

Global equity markets remain subdued in the month of March after registering strong gains in the last two months. All the major indices closed flat to negative in the month of March. Nikkei 225 (-2.5%), Dow Jones (-2.1%) and Shanghai Composite (-0.7%) were the major losers among the key global equity markets. In March, European markets (+2-4%), Indian markets (+2%) and Russia (+2%) were the best performers. Investors have earlier bought into the story that Mr. Donald Trump’s presidency will boost growth through higher infrastructure spending and tax cuts, which have led to higher inflation expectations. But US 10 Yr benchmark yields were hovering at five-week lows as investors’ optimism over the “Trump trade” faded. Leading indicators of global manufacturing activity have improved recently, with the pickup broadly based across the US, Europe and China which has further fuelled the rally in global equities. As we progress ahead, a number of global factors will be at play in CY2017 and would be key monitors such as sustainable DM recovery, US fiscal policy, US foreign trade policy, EU national elections and US Fed policy.

The upturn in euro zone factory activity accelerated in March to the fastest rate in nearly six years, according to a business survey that also showed a weaker euro boosted demand for exports. IHS Markit's final manufacturing Purchasing Managers' Index for the euro zone rose to 56.2 in March, the highest since April 2011, from February's 55.4. Renewed optimism about the region's economic outlook in recent weeks has been buoyed by a weak euro, which makes the currency bloc's exports relatively cheap on world markets. An index measuring output, which feeds into a composite PMI, rose to a near six-year high of 57.5 from 57.3. Prices in the 19 countries sharing the euro rose 1.5% year-on-year, Eurostat estimated. The upturn in both activity and prices will make a welcome reading for policymakers at the European Central Bank, who left their ultra-loose policy unchanged and maintained the key parameters of its 1.74 trillion euro ($1.95 trillion) asset buying scheme as ECB tries to lift growth and inflation.

US markets ended negative to flattish in the month of March (Dow Jones -2.1%, Nasdaq +0.1% and S&P 500 -1.4%). The rally that drove the US markets to a series of record highs since early July lost momentum due to the failure of republican leaders to obtain a vote on the repeal and replacement of the Affordable Care Act. Tax reform failure has now drawn into question the ability, and the magnitude, of other fiscal policy changes which have been the foundation of the rally since the US Presidential election. Investors have been expecting Mr. Trump's

BEL-20 (Belgium) 4.28 13.16

Bovespa (Brazil) -2.99 29.83

CAC 40 (France) 3.26 16.82

DAX (Germany) 2.04 23.55

Dow Jones (USA) -2.14 16.84

Hang Seng (Hong Kong) 1.41 16.05

Jakarta Composite (Indonesia) 3.82 14.92

KLSE Composite (Malaysia) 2.50 1.31

Madrid General (Spain) 7.17 19.85

NIFTY 50 (India) 2.55 18.55

Nasdaq (USA) 0.13 21.39

Nikkei 225 (Japan) -2.50 12.83

RTS (Russia) 2.51 29.79

S&P 500 (USA) -1.39 14.71

S&P BSE SENSEX (India) 2.19 16.88

Seoul Composite (S. Korea) 3.28 8.24

Shanghai Composite (China) -0.75 7.28

Swiss Market( Switzerland) 0.28 10.90

1 Year

CAGR (%)Absolute Returns (%)

1 MonthIndices

presidential election win will lead to higher spending on infrastructure, lower taxes and simpler regulations which would provide a boost to the US economy over the next few years. Data flow from the US has broadly been indicative of improved economic conditions. On the inflation front, personal consumption expenditures (PCE) inflation (the Fed’s preferred inflation gauge) has picked up to its fastest pace since October 2012, the PCE price index in Q4FY17 increased by 2.0% YoY vs 1.5% in Q3FY17. Nonfarm payrolls (NFP) addition has averaged 206,000 in last 3 months, picking up from 188,000 in the H2 2016. Feb NFP came in much above expectations at 2,35,000 while unemployment rate remains below 5%, indicative of a labour market at or near full-employment. Jobless claims too have been below 300,000, a threshold associated with a healthy labor market, for 108 consecutive weeks, the longest stretch since 1973. The stronger labor market and rising inflation could push the Federal Reserve to raise interest rates in coming months. Japan's long-stagnant economy has shown signs of life in recent months, with exports and factory output benefiting from a recovery in global demand. Japanese factory output rose at the fastest pace in eight months and the jobless rate hit a two-decade low in February, a sign a rebound in overseas demand continued to brighten prospects for the country's export-reliant economy. Industrial output rose 2.0% in February from the previous month, beating market forecasts for a 1.2% gain to mark the biggest increase since June last year.


Source: ACE MFPerformance as on 31st March 2017One Month = 1st March 2017 to 31st March 2017)

09

EQUITY MARKETS


NIFTY 50 2.55 18.55

S&P BSE 100 2.62 21.17

S&P BSE 200 2.85 22.47

S&P BSE 500 3.13 24.02

S&P BSE AUTO Index 2.16 22.28

S&P BSE BANKEX 3.01 32.78

S&P BSE Capital Goods 6.88 27.87

S&P BSE Consumer Durables 10.94 32.90

S&P BSE FMCG 3.99 20.51

S&P BSE Health Care -1.33 1.08

S&P BSE IT -0.90 -8.98

S&P BSE METAL Index -2.60 56.54

S&P BSE Mid-Cap 3.88 32.75

S&P BSE OIL & GAS Index 1.14 48.05

S&P BSE PSU 1.72 40.78 S&P BSE Power Index 3.97 28.08

S&P BSE Realty Index 3.44 30.25

S&P BSE SENSEX 2.19 16.88

S&P BSE Small-Cap 4.95 36.92

S&P BSE TECk Index -0.43 -5.46

1 Year

CAGR (%)Absolute Returns (%)

1 MonthIndices

Source: ACE MFPerformance as on 31st March 2017One Month = 1st March 2017 to 31st March 2017)

Separate figures showed Japan's jobless rate hit a 22-year low of 2.8% in February, down 0.2% point from the previous month. The BOJ had switched its policy target to interest rates from the pace of money printing in September, after years of massive asset purchases failed to jolt the economy out of stagnation and accelerate inflation to its 2% target. Japanese manufacturing activity also expanded in March at the fastest pace in almost three years as export orders surged, suggesting that overseas demand has rebounded strongly. The final Markit/Nikkei Japan Manufacturing Purchasing Managers Index (PMI) remains in expansionary mode in March as seasonally adjusted number came in at 52.4.

Activity in China's manufacturing sector unexpectedly expanded at the fastest pace in nearly 5 years in March, adding to evidence that the world's second-largest economy has gained momentum early this year as construction booms. China's official Purchasing Managers' Index (PMI) rose to 51.8 in March from the previous month's 51.6. Factory output accelerated in March, with the sub-index rising to 54.2 from 53.7 in February. Highlighting the strength of the building boom, a measure of the construction industry stood at a robust 60.5, compared to 60.1 in February. Total new orders -- which cover domestic and export demand -- also showed improvement, rising to 53.3 from February's 53. Going forward, market volatility is likely to high in coming months and may continue facing headwinds as investors seek more clarity on the US Fed rate hike and also on steps taken by Mr. Donald Trump against Chinese goods. Chinese equity markets declined in the month of September (Shanghai Composite -0.75%) after registering strong gains in the month of February.

During the month of March, Nifty closed with positive gains of 2.5% MoM. The outcome of the recently concluded state elections with a strong mandate for the BJP, especially in Uttar Pradesh along with positive global cues and receding demonetisation concerns has led to strong rally in Indian equities. BSE Consumer Durables (+10.9%), BSE Capital Goods (+6.9%), BSE FMCG (+4%) and BSE Bankex (+3%) were the top performers in March. BSE Metals (-2.6%), BSE Healthcare (-1.3%) and BSE IT (-0.9%) were the major losers among the key indices. The Q3FY17 earnings season has been led by positive surprises. Sensex companies (ex-banks & commodity) reported a steady performance amid fears of a drop in revenues & profitability on account of demonetisation. Impact of demonetisation was not as severe as

EQUITY - INDIA

Average P/E 15x

1 STDEV (-) 13x

7.00

9.00

11.00

13.00

15.00

17.00

19.00

21.00

May

-06

Oct

-06

Mar

-07

Aug-

07Ja

n-08

Jun-

08N

ov-0

8Ap

r-09

Sep-

09Fe

b-10

Jul-1

0D

ec-1

0M

ay-1

1O

ct-1

1M

ar-1

2Au

g-12

Jan-

13Ju

n-13

Nov

-13

Apr-

14Se

p-14

Feb-

15Ju

l-15

Dec

-15

May

-16

Oct

-16

Mar

-17

Source: Bloomberg

Nifty P/E (x)

1Yr Fwd Blended P/E (x) AVG P/E 1 STDEV (+) 1 STDEV (-)

Source: Bloomberg

1Yr Fwd Blended P/B (x) AVG P/B 1 STDEV (+) 1 STDEV (-)

Nifty P/B (x)

Average P/B 2.5x

1 STDEV (-) 2.04x

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

May

-06

Oct

-06

Mar

-07

Aug-

07Ja

n-08

Jun-

08N

ov-0

8Ap

r-09

Sep-

09Fe

b-10

Jul-1

0D

ec-1

0M

ay-1

1O

ct-1

1M

ar-1

2Au

g-12

Jan-

13Ju

n-13

Nov

-13

Apr-

14Se

p-14

Feb-

15Ju

l-15

Dec

-15

May

-16

Oct

-16

Mar

-17

Average P/B 2.60x

1 STDEV (-) 2.07x

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

May

-06

Oct

-06

Mar

-07

Aug-

07Ja

n-08

Jun-

08N

ov-0

8Ap

r-09

Sep-

09Fe

b-10

Jul-1

0D

ec-1

0M

ay-1

1O

ct-1

1M

ar-1

2Au

g-12

Jan-

13Ju

n-13

Nov

-13

Apr-

14Se

p-14

Feb-

15Ju

l-15

Dec

-15

May

-16

Oct

-16

Mar

-17

1 STDEV (-) 13x

Average P/E 15x

7.00

9.00

11.00

13.00

15.00

17.00

19.00

21.00

23.00

May

-06

Oct

-06

Mar

-07

Aug-

07Ja

n-08

Jun-

08N

ov-0

8Ap

r-09

Sep-

09Fe

b-10

Jul-1

0D

ec-1

0M

ay-1

1O

ct-1

1M

ar-1

2Au

g-12

Jan-

13Ju

n-13

Nov

-13

Apr-

14Se

p-14

Feb-

15Ju

l-15

Dec

-15

May

-16

Oct

-16

Mar

-17

1 STDEV (-)1.25x

Average P/B 1.96x

0.000.501.001.502.002.503.003.504.004.505.00

May

-06

Oct

-06

Mar

-07

Aug-

07Ja

n-08

Jun-

08N

ov-0

8Ap

r-09

Sep-

09Fe

b-10

Jul-1

0D

ec-1

0M

ay-1

1O

ct-1

1M

ar-1

2Au

g-12

Jan-

13Ju

n-13

Nov

-13

Apr-

14Se

p-14

Feb-

15Ju

l-15

Dec

-15

May

-16

Oct

-16

Mar

-17

Source: Bloomberg


MSCI Finance P/B

10

EQUITY MARKETS


anticipated with the management commentary highlighting the situation normalising with each passing day. In Q3FY17, sales for Sensex companies rose 2.8% YoY, EBITDA grew 1.5% YoY, EBITDA margins came in at 21.3%, down 27 bps YoY. The decline in EBITDA margins was largely on account of negative operating leverage with increase in fixed overheads (up 221 bps) outpacing the decline in raw material costs (down 194 bps). Consequently, PAT for Q3FY17 declined 3.5%. Lower PAT was on account of double digit rise in depreciation (up 12% YoY) & interest expense (up 14% YoY), which was partly compensated by higher other income (up 40% YoY).

Government has been taking various reform measures which shall bring long term capital in India and benefit the economy. FM, Arun Jaitley announced a slew of measures in Union Budget 2017 to offset some of the demonetisation pain – Budget rural housing schemes, interest waiver for sowing loans, social welfare schemes and improving the ‘ease of doing business’ for traders/MSMEs. Overall, we remain constructive on the markets from a medium to long term perspective. The key sectoral plays are autos, cement, specialty chemicals, high quality private banking, NBFCs, select pharma and uniquely positioned MNCs.

Valuations remain close to long term averages on 1year forward basis with Nifty index trading at P/E of 18x on FY18E and at P/E of 15x on FY19E. We re-iterate our investment strategy of being stock specific and focus on high growth, well-managed companies with strong cashflows and credible management teams.

Banking & Financial Services

The demonetisation driven cash crunch will impact BFSI sector negatively in the short term as sharp slowdown in economic activity could result in rise in NPAs and lower loan growth.

Over the long term, the banking and financial services sector as a whole will benefit from growing opportunities arising from the economy migrating to the formal segment. Banks and NBFCs will get more opportunities in self-employed, SME and lower income segments. Banks and NBFCs are expected to gain market share from informal lenders as it will be difficult to evade taxes in India. Financial savings will rise as more individuals will become tax compliant. Any correction in good quality private banks and NBFCs shall be used as an opportunity to accumulate these stocks. Among NBFCs, we prefer Mortgage finance and Consumer finance companies considering their steady growth and stable asset quality.

Source: Bloomberg

Sensex P/E (x)


Source: Bloomberg


Sensex P/B (x)

EQUITY MARKETS


Capital Goods/Infrastructure

FY16 was one of the tough years for the infrastructure sector. Order books were stagnant and growing marginally (on account of lower pvt capex); Working capital cycle had elongated and with high cost of debt profitability was badly impacted. Governments “Make in India” initiative seems to gather momentum and is likely to be a key growth driver going forward. High Interest cost regime will likely come to an end which will further aid the profitability in the medium to long term. Govt has taken various steps to put the economy back on track which will lead to revival in the capex cycle. Overall FY17 seems to be a promising year with lower commodity prices and lower interest cost to aid profitability.

Power Sector

Overall Power sector had been marred on account of under recoveries which put stress on their financials and balance sheet. However, situation is likely to improve as a) power regulator is likely to pass an order which will be beneficial to the UMPP players b) Fuel costs have fallen dramatically which will aid the company’s profitability. Governments focus on renewable space seems to have got tremendous response with solar being in the forefront. Solar power prices hit a new low in 2016 with a lot of foreign players showing strong interest to invest in the solar space. The sector is likely to benefit from the increased clarity on the regulatory hurdle front and reforms undertaken by the centre. PLF is expected to pick up on back of improved clarity on fuel linkage.

Information Technology

IT industry is changing drastically more towards discretionary spending backed by disruptive technology and digital innovation. Leadership in the industry will change towards a company having higher revenue from

discretionary related services. Recent results for most IT companies were inline with estimates, but future outlook continues to remain bleak. Investment in the sector should be stock specific. INR USD movement will help the companies to report better operating margins in a period when topline growth is challenged by cross currency volatility and global slowdown. MSCI IT index is trading at a discount to its 10-year average P/E.

Pharmaceuticals Sector

With the environment for pure-play generic companies becoming increasingly challenging, we believe it is imperative for Indian players to move up the value chain (Specialty Pharma/Complex Generics). Ergo, the sector will be in a transformational phase over the next few years as companies reinvent themselves to maintain or improve growth rates in the US market. We continue to remain neutral on the pharma sector, though we continue to prefer players present in niche and specialized product portfolio with focus on regulated markets.

Consumer Sector

Near-term demand across categories could be significantly affected due to cash crunch. Over the long term, consumption demand will have a positive impact and expected to rise due to efficient price discovery and higher investment in economy supported by the rise in tax collections. With the implementation of the 7th Pay Commission, pay hike for (central and state) government employees, combined with a good monsoon, consumption will get a boost. The 23.5% increase in public sector salaries proposed by the 7th Pay Commission is worth 0.7% of GDP. Higher public sector wages will most likely contribute to strong consumption growth. We remain positive on domestic consumption sectors like Automobiles, Consumer Durables, FMCG and Consumer Discretionary.

Source: Bloomberg


MSCI PHARMA P/E

Average P/E 21x

1 STDEV (-) 18x

10.0012.0014.0016.0018.0020.0022.0024.0026.0028.0030.00

May

-06

Oct

-06

Mar

-07

Aug-

07Ja

n-08

Jun-

08N

ov-0

8Ap

r-09

Sep-

09Fe

b-10

Jul-1

0D

ec-1

0M

ay-1

1O

ct-1

1M

ar-1

2Au

g-12

Jan-

13Ju

n-13

Nov

-13

Apr-

14Se

p-14

Feb-

15Ju

l-15

Dec

-15

May

-16

Oct

-16

Mar

-17

Source: Bloomberg


MSCI IT P/E

Average P/E 18x

1 STDEV (-) 14x

7.00

12.00

17.00

22.00

27.00

32.00

May

-06

Oct

-06

Mar

-07

Aug-

07Ja

n-08

Jun-

08N

ov-0

8Ap

r-09

Sep-

09Fe

b-10

Jul-1

0D

ec-1

0M

ay-1

1O

ct-1

1M

ar-1

2Au

g-12

Jan-

13Ju

n-13

Nov

-13

Apr-

14Se

p-14

Feb-

15Ju

l-15

Dec

-15

May

-16

Oct

-16

Mar

-17


COMMODITIES AND CURRENCY MARKETS

Gold in the last quarter of 2016-17 closed in positive in line with our expectations settling with gains of more than 8% mainly supported by a weaker dollar, latest mixed economic reports from the U.S., political uncertainty triggered by BREXIT, election in the European Union, uncertain policies of U.S. government, etc.

The precious metal witnessed high volatility in March, with prices dropping heavily in the first half of the month and then recovering fully towards the close of the month and settling strong - making a good case for further gains in the near-month.

The first half of the month was all about the impending rate hike in the U.S. and this kept the gold prices under pressure for most part the first half. The rate hike did eventually come and the initial reaction pushed prices further down. In the first couple of weeks of March, gold prices fell from its highs above USD 1250 towards USD 1220 and then briefly below USD 1200 per ounce.

But the U.S. Fed announcement of a hike was followed by a not so hawkish statement and this disappointed investors and the dollar bulls, which sold-off sharply, helping recovery in the gold prices to move back quickly above USD 1200. The way prices bounced back, it looked that the gold bulls were again back in command. The gold prices moved further away from its lows, bouncing back above USD 1220 and went towards the range highs around USD 1260 per ounce, from where we had seen a lot of selling earlier in the month and also led to a bit of correction in the prices towards the end of the month.

Scotland has officially requested a referendum i.e. voting to be an independent nation from U.K. - this will be the second time scotland will be voting to leave the U.K., earlier they had failed in the referendum.In the European Union, we have the French elections and the first round will be a key focus in April and so far it appears that Mr.Emmanuel Macron holds a comfortable lead over Ms.Marine Le Pen. As we near April 23, the euro’s sensitivity to the polls may increase significantly and we might see a high volatility in the markets.

US dollar has remained on the back-foot in the first quarter of 2017 which was down by about 5% against the safe-haven yen. A rate hike from the U.S. Fed failed to fuel a strong dollar rally. This is mainly due to lack of urgency among U.S. policymakers to follow up the March hike in June and adding to the weakness was the failure of republican leaders to obtain a vote on the repeal and replacement of the Affordable Care Act, uncertainly over tax reforms.

In the month ahead, the data which would be closely watched by the investors would be the Non-Farm Payroll report, unemployment rate, the minutes of last FOMC meeting, the inflation report and other labor market & housing reports which could give an insight into the future rate hikes by the U.S. Fed. Markets expect at least two more hikes this year but we also had some U.S. Fed members favoring more than two hikes in the coming months and so the FOMC minutes are likely to give some hints. Any indication of further rate hikes is likely to again push the gold prices back towards USD 1190-1200 levels.

Technically, gold looks consolidative in the near-term with prices facing technical resistance around USD 1260-1263 per ounce levels, while on the downside, prices may face support around March lows i.e. around USD 1190. A sustained break-out above USD 1263 may see prices moving higher towards USD 1290-USD 1295 levels.

Indian rupee has continued to appreciate in the month of March, up by 2.75% ending 64.85 against February's close of 66.685, while on quarterly basis the rupee has appreciated by more than 4.5%.

Chart: Gold v/s U.S. Dollar index

Source: Bloomberg

Dollar IndexCOMEX Gold

86889092949698100102104106

0200400600800

1000120014001600

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un

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16-S

ep

7-O

ct

28-O

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24-M

ar

In the near-term, the momentum in the currency pair i.e. USD/INR still down but we may see some short-covering if support around 64.60-64.70 is not breached on a sustainable basis. The rebound could be towards 65.50-65.80 levels. However, if the currency manages to breach the given support then further selling could be seen towards 64.00-63.60.

Indian Rupee continued its winning streak outperforming its Asian peers touching almost 17-months high against the US Dollar in March. INR touched 17-month high of 64.85 by march end marking the highest closing since October 2015. Improving macroeconomic picture, BJPs historic win in the state elections, etc on the domestic front and dovish rate hike stance by the U.S Fed, policy uncertainty in the U.S on the global front have fuelled this strengthening of Indian rupee. Since the rate announcement on March 15th, the US dollar index is almost down by 1.7%. Going ahead, markets seems to have almost priced in future rate hikes by the U.S Fed rate hikes leaving little room for interest rate divergence to further support the currency.

COMMODITIES AND CURRENCY MARKETS

13April 2017 Investime 13

INR 66.79 68.38 67.92 66.69 64.85

Euro 1.10 1.06 1.05 1.06 1.06

JPY 104.69 114.44 116.87 112.75 111.38

GBP 1.22 1.25 1.23 1.24 1.25

CHF 0.99 1.02 1.02 1.01 1.00

AUD 104.69 0.74 0.72 0.77 0.76

Currencies


28 Oct 16 30 Nov 16 30 Dec 16 28 Feb 17 31 Mar 17

USD/INR



USD/YEN

60.0061.0062.0063.0064.0065.0066.0067.0068.0069.0070.00

Apr-

15M

ay-1

5

Jun-

15Ju

l-15

Aug-

15

Sep-

15

Oct

-15

Nov

-15

Dec

-15

Jan-

16

Feb-

16M

ar-1

6Ap

r-16

May

-16

Jun-

16Ju

l-16

Aug-

16

Sep-

16

Oct

-16

Nov

-16

Dec

-16

Jan-

17

Feb-

17M

ar-1

7

EUR/USD


1.00

1.10

1.20

1.30

1.40

1.50

Apr-

15M

ay-1

5

Jun-

15Ju

l-15

Aug-

15

Sep-

15

Oct

-15

Nov

-15

Dec

-15

Jan-

16

Feb-

16M

ar-1

6Ap

r-16

May

-16

Jun-

16Ju

l-16

Aug-

16

Sep-

16

Oct

-16

Nov

-16

Dec

-16

Jan-

17

Feb-

17M

ar-1

7

GBP/USD


1.10

1.20

1.30

1.40

1.50

1.60

1.70

1.80

Apr-

15M

ay-1

5

Jun-

15Ju

l-15

Aug-

15

Sep-

15

Oct

-15

Nov

-15

Dec

-15

Jan-

16

Feb-

16M

ar-1

6Ap

r-16

May

-16

Jun-

16Ju

l-16

Aug-

16

Sep-

16

Oct

-16

Nov

-16

Dec

-16

Jan-

17

Feb-

17M

ar-1

7

95.00

100.00

105.00

110.00

115.00

120.00

125.00

130.00

Apr-

15M

ay-1

5

Jun-

15Ju

l-15

Aug-

15

Sep-

15O

ct-1

5N

ov-1

5D

ec-1

5Ja

n-16

Feb-

16M

ar-1

6Ap

r-16

May

-16

Jun-

16Ju

l-16

Aug-

16

Sep-

16O

ct-1

6N

ov-1

6D

ec-1

6Ja

n-17

Feb-

17M

ar-1

7

14

Source: ACEMF*Risk-free rate assumed to be 6.18%**Standard Deviation and Treynor Ratio are calculated on absolute basis using 3 year historical data of monthly returns Performance as on March 31, 2017Benchmark: Category benchmark indices considered for respective categoriesPlease refer to RISKOMETER on page no 27 for all Risk related information about the above mentioned schemes.

Fund Manager

Particulars Birla SL AdvantageFund(G)

MULTI CAP FUNDS

Franklin India High Growth Cos Fund(G)

Kotak Select Focus Fund(G)

Category Average

BenchmarkScheme Names

NIFTY 500

AUM (Rs. Crs.) Feb-2017 2,694 5,723 8,467 5,436Absolute Returns (%)1 Month 3.05 2.14 3.47 4.74 3.81 3.713 Months 16.37 14.03 14.95 19.44 13.97 14.506 Months 4.57 9.09 8.88 12.33 7.47 8.12CAGR (%)1 Year 31.06 25.57 29.69 37.20 25.38 23.912 Years 11.90 7.72 12.24 15.65 8.34 7.033 Years 24.97 26.23 24.02 19.86 15.225 Years 21.15 23.36 20.71 17.12 13.61Inception Date 24-Feb-95 26-Jul-07 11-Sep-09 28-Apr-14RatiosSD Annualised (%) 18.30 17.59 16.21 16.66Treynor 1.40 1.57 1.40 1.96

Satyabrata Mohanty Anand Radhakrishnan & Roshi Jain

Harsha Upadhyaya

Exit Load 1% on or before 2Y 1% on or before 1Y, Nil after 1Y

Gautam Sinha Roy & Siddharth Bothra

MOSt Focused Multicap 35 Fund-Reg(G)

Fund Manager

Particulars Birla SL Frontline Equity Fund(G)

LARGE CAP FUNDS

Franklin India Bluechip Fund(G)

ICICI Pru Focused BlueChip Eq Fund(G)

Category Average


NIFTY 50

AUM (Rs. Crs.) Feb-2017 15,520 8,173 12,536 2,578Absolute Returns (%)1 Month 3.71 2.20 2.42 3.74 3.45 3.313 Months 13.22 11.36 11.57 14.91 13.03 12.076 Months 6.63 6.09 7.68 8.37 6.48 6.53CAGR (%)1 Year 24.22 18.74 24.78 24.67 22.08 18.552 Years 8.59 7.22 7.92 6.37 6.18 3.943 Years 18.44 16.13 16.64 19.28 15.74 11.015 Years 18.36 13.88 16.05 17.32 14.36 11.60Inception Date 30-Aug-02 1-Dec-93 23-May-08 8-Aug-07RatiosSD Annualised (%) 15.24 13.69 14.50 17.03Treynor 1.05 0.95 0.93 1.04

Mahesh Patil Anand Radhakrishnan & Roshi Jain

Manish Gunwani & Ihab Dalwai

Exit Load 1% on or before 1Y, Nil after 1Y

1% on or before 1Y 1% on or before 1Y, Nil after 1Y

Ashwani Kumar & Shailesh Raj Bhan

Reliance Top 200 Fund(G)

1% on or before 1Y, Nil after 1Y

CORE RECOMMENDED FUNDS - EQUITY


15

Source: ACEMF*Risk-free rate assumed to be 6.18%**Standard Deviation and Treynor Ratio are calculated on absolute basis using 3 year historical data of monthly returns Lock-in of 3 years (for ELSS)Performance as on Benchmark: Category benchmark indices considered for respective categoriesPlease refer to RISKOMETER on page no 27 for all Risk related information about the above mentioned schemes.

March 31, 2017

Fund Manager

Particulars Birla SL Tax Relief '96(G)

EQUITY LINKED SAVINGS SCHEMES (ELSS)

Category Average


NIFTY 500

AUM (Rs. Crs.) Feb-2017 2,780 1,907 2,657 4,014 6,916Absolute Returns (%)1 Month 6.39 4.20 2.26 5.09 3.74 4.40 3.713 Months 14.20 14.74 11.86 13.88 16.06 14.89 14.506 Months 7.00 7.69 5.42 7.65 10.39 7.42 8.12CAGR (%)1 Year 23.19 30.67 18.83 26.99 28.45 25.71 23.912 Years 8.99 12.77 7.40 9.40 6.11 8.38 7.033 Years 23.50 24.10 20.81 20.12 24.23 19.88 15.225 Years 20.70 20.95 18.05 18.98 20.81 17.35 13.61Inception Date 10-Mar-08 18-Jan-07 10-Apr-99 19-Aug-99 21-Sep-05RatiosSD Annualised (%) 15.64 16.78 14.24 15.81 20.74Treynor 1.40 1.40 1.40 1.20 1.27

Ajay Garg Rohit Singhania Lakshmikanth Reddy &

R. Janakiraman

George Heber Joseph &

Ihab Dalwai

Ashwani Kumar

Fund Manager

Particulars Canara Rob Emerg Eq Fund-Reg(G)

MID / SMALL CAP FUNDS

Franklin India Prima Fund(G)

HDFC Mid-Cap Opportunities

Fund(G)

Category Average


Nifty Free Float Midcap 100

AUM (Rs. Crs.) Feb-2017 1,514 5,099 14,755 3,038Absolute Returns (%)1 Month 6.09 4.90 5.27 6.63 5.15 4.353 Months 21.44 17.34 17.10 18.18 16.99 19.836 Months 11.24 9.49 9.67 16.44 9.10 11.57CAGR (%)1 Year 38.52 32.10 37.37 42.22 32.64 34.852 Years 15.73 13.89 16.38 19.74 13.02 14.993 Years 35.56 29.76 30.30 37.10 29.56 25.905 Years 27.52 26.06 24.88 30.52 24.31 17.38Inception Date 11-Mar-05 1-Dec-93 25-Jun-07RatiosSD Annualised (%) 22.14 16.77 17.10 22.75Treynor 2.10 2.20 2.13 2.63

Ravi Gopalakrishnan & Kartik Mehta

R. Janakiraman & Hari Shyamsunder

Chirag Setalvad & Rakesh Vyas

Exit Load 1% on or before 1Y, Nil after 1Y

1% on or before 1Y 1% on or before 1Y, Nil after 1Y

Sunil Singhania & Samir Rachh

Reliance Small Cap Fund(G)

1% on or before 1Y, Nil after 1Y

DSPBR Tax Saver

Fund-Reg(G)

Franklin India Taxshield(G)

ICICI Pru LT Equity Fund

(Tax Saving)(G)

Reliance Tax Saver

(ELSS) Fund(G)



16

Fund Manager

Particulars Edelweiss Arbitrage

Fund-Reg(G)

ARBITRAGE FUNDS

Category Average


Crisil Liquid Fund Index

Bhavesh Jain & Kartik Soral

Kayzad Eghlim & Manish Banthia

Yogik Pitti & Arpit Kapoor

Deepak Gupta Neeraj Kumar

ICICI Pru Equity-Arbitrage Fund(G)

IDFC Arbitrage

Fund-Reg(G)

Kotak Equity Arbitrage

Scheme(G)

SBI Arbitrage Opportunities Fund-Reg(G)

AUM (Rs. Crs.) Feb-2017 2,061 7,094 2,872 5,794 944Simple Annualised Returns (%)3 Months 5.77 5.18 5.61 5.28 4.69 4.91 6.586 Months 6.09 5.87 5.89 5.74 5.68 5.71 6.59CAGR (%)1 Year 6.50 6.51 6.24 6.31 6.05 6.35 7.112 Year 6.76 6.59 6.38 6.56 6.23 6.53 7.573 Years 7.27 7.07 7.32 7.06 7.11 8.045 Years 8.39 7.96 8.14 7.88 7.89 8.36Inception Date 27-Jun-14 30-Dec-06 21-Dec-06 29-Sep-05 03-Nov-06Exit Load 0.25% on or

before 30D, NIL after 30D

0.25% on or before 1M, Nil after 1M

0.25% on or before 30D, Nil after 30D

0.50% on or before 1M, Nil after 1M

Fund Manager

Particulars Birla SL Balanced '95

Fund(G)

BALANCED FUNDS

Category Average


CRISIL Balanced Fund - Aggressive

Index

Mahesh Patil & Dhaval Shah

Atul Bhole & Vikram Chopra

Chirag Setalvad & Rakesh Vyas

Sankaran Naren & Atul Patel

Sanjay Parekh & Amit Tripathi

DSPBR Balanced

Fund-Reg(G)

HDFC Balanced Fund(G)

ICICI Pru Balanced Fund(G)

Reliance Reg Savings Fund-

Balanced Plan(G)

AUM (Rs. Crs.) Feb-2017 5,964 2,854 8,983 6,081 4,364Absolute Returns (%)1 Month 3.63 3.00 3.26 2.05 2.35 2.82 2.613 Months 11.21 10.90 10.12 9.21 10.85 9.61 8.026 Months 6.66 4.61 7.36 8.81 6.85 5.94 5.52CAGR (%)1 Year 23.58 23.39 23.26 27.68 20.20 20.72 16.102 Years 10.23 10.69 10.43 11.59 9.84 7.92 6.173 Years 20.22 20.68 20.91 19.95 18.92 17.09 11.365 Years 17.41 14.97 17.51 18.56 16.76 15.25 11.12Inception Date 10-Feb-95 27-May-99 11-Sep-00 3-Nov-99 10-Jun-05Exit Load Nil upto 15% of

units,1% in excess of limit on

or before 365D and Nil after

365D

NIL upto 10% of investment

within 12M, 1% exceding 10% of

investment within 12M, NIL

after 12M

NIL upto 15% of investment and 1% in excess of

15% of investment on or

before 1Y, NIL after 1Y

Nil on 10% of units within 1Y

and 1% for more than 10% of units

within 1Y, Nil after 1Y.

Nil for 10% of investments and 1% for remaining on or before 12M,

Nil after 12M

Exposure (%)Debt 23.31 20.48 24.18 25.27 26.98Equity 69.89 72.91 64.67 67.58 65.35Cash & Equivalent 6.80 6.60 11.15 7.16 7.67

Source: ACEMFPerformance as on Benchmark: Category benchmark indices considered for respective categoriesPlease refer to RISKOMETER on page no 27 for all Risk related information about the above mentioned schemes.

March 31, 2017



0.25% on or before 1M

17

CORE RECOMMENDED FUNDS - DEBT

Fund Manager

Particulars Axis LiquidFund(G)

LIQUID FUNDS

Birla SL FRF-Short Term Plan(G)

ICICI Pru Money Market Fund(G)

Category Average



AUM (Rs. Crs.) Feb-2017 20,305 4,454 12,631 7,562Month End Average Maturity (Days) Feb-2017 32 40 41 44Simple Annualised Returns (%)1 Month 6.77 6.78 6.75 6.75 6.47 6.703 Months 6.71 6.68 6.65 6.66 5.85 6.586 Months 6.76 6.75 6.72 6.73 6.21 6.59CAGR (%)1 Year 7.28 7.37 7.30 7.29 6.86 7.11Inception Date 9-Oct-09 13-Oct-05 8-Mar-06 17-Nov-06Credit Quality (%) Feb-2017AA/Equiv 0.14 2.25AA+ 0.79 1.69AAA & Equiv 71.52 76.51 61.82 102.97Cash & Equivalent -0.09 5.50 -1.10 -8.78SOV 21.97 5.07 35.31 5.81

Devang Shah & Aditya Pagaria

Kaustubh Gupta & Sunaina da Cunha

Rahul Goswami & Nikhil Kabra

Krishna Venkat Cheemalapati &

Nitish Sikand

Invesco IndiaLiquid Fund(G)

Fund Manager

Particulars Kotak Floater-ST(G)

LIQUID FUNDS

Reliance Liquid-Treasury Plan(G)

Sundaram Money Fund-Reg(G)

Category Average



AUM (Rs. Crs.) Feb-2017 14,082 28,889 7,243 9,872Month End Average Maturity (Days) Feb-2017 37 32 37 36Simple Annualised Returns (%)1 Month 6.74 6.76 6.72 6.71 6.47 6.703 Months 6.68 6.67 6.61 6.67 5.85 6.586 Months 6.75 6.73 6.67 6.73 6.21 6.59CAGR (%)1 Year 7.31 7.28 7.22 7.28 6.86 7.11Inception Date 14-Jul-03 9-Dec-03 8-Dec-05 1-Sep-04Credit Quality (%) Feb-2017AA/Equiv 0.55 0.98AA+ 0.01 1.54 0.35AAA & Equiv 66.86 69.31 62.34 62.93Cash & Equivalent 2.68 4.08 0.49 5.71SOV 18.42 16.91 24.31 18.70

Deepak Agrawal Anju Chhajer Dwijendra Srivastava &

Siddharth Chaudhary

Amit Somani

Tata Money Market Fund-Reg(G)

Source: ACEMFNo Exit LoadPerformance as on Benchmark: Category benchmark indices considered for respective categoriesPlease refer to RISKOMETER on page no 27 for all Risk related information about the above mentioned schemes.

March 31, 2017


18

Fund Manager

Particulars Axis Treasury Advantage Fund(G)

ULTRA SHORT TERM FUNDS

Birla SL Savings Fund(G)

DHFL Pramerica Ultra ST(G)

Category Average



Month End AUM (Rs. Crs.) Feb-2017 2921.72 18,358 3,367 8,399Month End Average Maturity (Days) Feb-2017 181 555 157 329Simple Annualised Returns (%)3 Months 7.28 7.28 7.13 8.88 6.13 6.586 Months 7.06 7.52 7.23 8.91 6.79 6.59CAGR (%)1 Year 7.84 8.81 7.94 9.53 7.84 7.112 Years 8.19 8.81 8.38 9.57 8.09 7.573 Years 8.29 9.02 8.77 9.68 8.39 8.045 Years 8.78 9.29 9.21 9.87 8.61 8.36Inception Date 9-Oct-09 16-Apr-03 4-Jul-08 18-Dec-07Credit Quality (%) Feb-2017AA/Equiv 6.68 8.44 12.01 35.61AA+ 8.36 9.04 3.77 4.35AAA & Equiv 72.60 56.94 67.96 30.44Cash & Equivalent 12.36 5.03 12.10 3.15A/Equiv & Others 3.49 25.92SOV 14.33 4.15Exit Load Nil Nil Nil Nil

Devang Shah & Aditya Pagaria

Kaustubh Gupta & Sunaina da Cunha

Kumaresh Ramakrishnan

Sachin Padwal-Desai & Pallab Roy

Franklin India Ultra Short Bond Fund-

Super Inst(G)


March 31, 2017

Fund Manager

Particulars HDFC FRIF-Short Term Plan(G)

ULTRA SHORT TERM FUNDS

ICICI Pru Flexible Income Plan(G)

Reliance Money Manager Fund(G)

Category Average



Month End AUM (Rs. Crs.) Feb-2017 13,697 21,405 16,963 11,862Month End Average Maturity (Days) Feb-2017 493 410 317 153Simple Annualised Returns (%)3 Months 7.09 7.83 7.01 7.80 6.13 6.586 Months 7.50 7.95 7.19 7.92 6.79 6.59CAGR (%)1 Year 8.55 8.78 8.08 8.59 7.84 7.112 Years 8.62 8.77 8.24 8.68 8.09 7.573 Years 8.87 8.95 8.45 8.85 8.39 8.045 Years 9.07 9.23 8.89 9.15 8.61 8.36Inception Date 23-Oct-07 27-Sep-02 20-Mar-07 23-Apr-07Credit Quality (%) Feb-2017AA/Equiv 9.04 15.64 8.92 18.02AA+ 11.89 3.60 8.11 1.98AAA & Equiv 69.46 64.75 69.30 44.55Cash & Equivalent 3.75 3.63 9.68 27.76A/Equiv & Others 0.39SOV 4.92 12.39 3.61 7.59Exit Load Nil Nil Nil Nil

Shobhit Mehrotra & Rakesh Vyas

Rahul Goswami & Rohan Maru

Amit Tripathi & Anju Chhajer

Sudhir Agarwal

UTI Treasury Advantage Fund(G)



Fund Manager

Particulars Axis Short Term Fund(G)

SHORT TERM FUNDS (CONSERVATIVE)

Birla SL Short Term Fund(G)

HDFC Short Term Opportunities Fund(G)

Category Average


Crisil Short Term Bond Index

Month End AUM (Rs. Crs.) Feb-2017 6,950 17,750 9,974Month End Average Maturity (Years) Feb-2017 2.30 2.63 1.44Simple Annualised Returns (%)3 Months 6.19 6.34 6.85 4.86 6.146 Months 7.57 7.59 7.57 6.49 7.43CAGR (%)1 Year 8.90 9.48 8.89 8.58 9.102 Years 8.49 9.08 8.64 8.25 8.773 Years 8.95 9.67 9.18 8.90 9.295 Years 8.92 9.65 9.21 8.92 9.15Inception Date 22-Jan-10 03-Mar-97 25-Jun-10Credit Quality (%) Feb-2017AA/Equiv 4.28 1.76 6.47AA+ 3.61 8.76 4.03AAA & Equiv 72.57 56.43 70.20Cash & Equivalent 8.49 7.81 5.14A/Equiv & Others 4.01SOV 11.05 25.24 10.14

Devang Shah Maneesh Dangi & Kaustubh Gupta

Anil Bamboli & Rakesh Vyas

Exit Load Nil Nil Nil

Fund Manager

Particulars Birla SL ST Opportunities

Fund(G)

Birla SL Treasury Optimizer

Plan(G)

DHFL Pramerica Short Maturity

Fund(G)

ICICI Pru Short Term

Plan(G)

Reliance STF(G)

SHORT TERM FUNDS (MODERATE / AGGRESSIVE)

Category Average


Crisil Short Term Bond

Index

AUM (Rs. Crs.) Feb-2017 5,611 8,597 1,525 9,545 17,184Month End Average 4.15 5.94 2.98 3.84 3.01

Simple Annualised Returns (%)3 Months 3.14 3.26 7.18 6.22 5.63 4.86 6.146 Months 5.71 6.14 7.92 7.88 6.76 6.49 7.43CAGR (%)1 Year 9.43 10.34 9.53 10.24 8.98 8.58 9.102 Years 8.90 9.45 8.77 9.16 8.43 8.25 8.773 Years 9.69 10.41 9.49 9.93 9.29 8.90 9.295 Years 10.16 10.20 9.32 9.38 9.17 8.92 9.15Inception Date 9-May-03 05-May-08 27-Jan-03 25-Oct-01 18-Dec-02Credit Quality (%) Feb-2017AA/Equiv 23.92 3.30 23.21 9.04 0.64AA+ 6.32 8.96 4.98 2.81 13.32AAA & Equiv 28.23 36.27 51.02 42.37 58.14Cash & Equivalent 13.41 6.62 9.06 6.02 4.10SOV 28.12 44.84 10.08 39.77 23.81

Maturity (Years) Feb-2017

Maneesh Dangi & Kaustubh Gupta

Maneesh Dangi & Kaustubh Gupta

Nitish Gupta Manish Banthia Prashant Pimple

Exit Load Nil upto 15% of units,0.50% in

excess of limit on or before 180D

and Nil after 180D

Nil Nil for 10% of investment and

0.75% for remaining

Investment on or before 6M, Nil after 6M


Nil

19


March 31, 2017



Fund Manager

Particulars HDFC High Interest Fund-

Dynamic Plan(G)

ICICI Pru Dynamic Bond

Fund(G)

Reliance Dynamic Bond(G)

Tata Dynamic Bond Fund-

Reg(G)

UTI Dynamic Bond Fund-

Reg(G)

DYNAMIC BOND FUNDS

Category Average


Crisil Composite Bond

Fund Index

Month End AUM (Rs. Crs.) Feb-2017 2,457 1,580 4,296 1,206 1,417Average Maturity (Years) Feb-2017 10.54 7.25 8.52 4.86 3.22Month End YTM (%) Feb-2017 7.55 7.90 7.47 7.01 7.36Simple Annualised Returns (%)3 Months -0.66 3.63 1.11 2.21 5.62 -0.51 3.206 Months 3.43 6.19 5.08 6.69 11.18 4.74 6.73CAGR (%)1 Year 11.06 11.12 11.45 10.36 14.49 10.10 11.092 Years 8.36 9.58 8.46 8.22 10.25 8.05 9.643 Years 11.09 11.18 10.78 10.27 11.64 9.98 11.265 Years 9.92 9.71 9.69 9.91 10.70 9.11 9.45Inception Date 28-Apr-97 12-Jun-09 15-Nov-04 03-Sep-03 23-Jun-10


Rahul Goswami Prashant Pimple Akhil Mittal Amandeep Singh Chopra

Exit Load 0.50% on or before 6M, Nil after 6M

1% on or before 3M, Nil after 3M

1% on or Before 12M, Nil After

12M


1% on or before 365D, Nil after

365D

20

Fund Manager

Particulars Birla SL Medium Term Fund(G)

DSPBR Income Opportunities Fund-Reg(G)

HDFC Corporate Debt Opportunities

Fund-(G)

HDFC STP(G)

Reliance Reg Savings Fund-Debt Plan(G)

ACCRUAL / CREDIT OPPORTUNITIES FUNDS

Category Average


Crisil Short Term Bond

Index

Month End AUM (Rs. Crs.) Feb-2017 9,888 6,237 10,739 4,249 8,717Average Maturity (Years) Feb-2017 5.52 3.11 3.57 1.73 2.39Month End YTM (%) Feb-2017 8.88 9.04 8.83 8.35 8.93Simple Annualised Returns (%)3 Months 4.99 6.86 7.83 7.28 7.89 8.01 6.146 Months 6.66 7.54 7.92 7.98 8.03 8.19 7.43CAGR (%)1 Year 9.48 9.81 10.48 9.53 9.71 10.12 9.102 Years 9.41 9.56 9.77 9.44 9.18 9.30 8.773 Years 10.23 10.07 10.53 9.95 9.70 9.92 9.295 Years 10.46 9.56 9.46 9.47 9.48 9.15Inception Date 25-Mar-09 13-May-03 25-Mar-14 28-Feb-02 10-Jun-05Credit Quality (%) Feb-2017AA/Equiv 35.65 30.70 38.59 36.80 39.80AA+ 6.59 4.50 3.99 7.73 15.28AAA & Equiv 18.29 39.37 16.90 19.73 8.04Cash & Equivalent 2.57 2.48 6.93 7.82 7.93A/Equiv & Others 9.65 21.55 32.30 25.74 26.80SOV 25.91 0.02Unrated 1.34 1.40 1.29 2.15 2.16

Maneesh Dangi & Sunaina da Cunha

Laukik Bagwe & Pankaj Sharma

Shobhit Mehrotra & Rakesh Vyas


Prashant Pimple

Exit Load Nil upto 15% of units,1% in

excess of limit on or before 365D

and Nil after 365D

Nil for 10% of investment and

1% for remaining Investment on or before 12M, Nil

after 12M

Nil for 15% of Units and for

remaining investment 2% on or before 12M, 1% after 12M but on or before 24M,

0.50% after 24M but on or before

36M, Nil after 36M

Nil for 15% of Units and 0.75%

for remaining investment on or before 12M, Nil

after 12M

Nil for 10% of units and 1% for remaining units

on or before 12M, Nil after

12M


March 31, 2017



21

Fund Manager

Particulars Axis Income Fund(G)

Birla SL Income Plus(G)

HDFC Income Fund(G)

IDFC SSIF-Invest-Reg(G)

Kotak Bond Fund - Reg(G)

INCOME FUNDS

Category Average

BenchmarkScheme NamesCrisil

Composite Bond

Fund Index

Month End AUM (Rs. Crs.) Feb-2017 229 2,121 2,086 1,396 3,326Average Maturity (Years) Feb-2017 4.20 14.90 14.17 2.83 10.97Month End YTM (%) Feb-2017 8.56 7.53 7.41 6.71 7.60Simple Annualised Returns (%)3 Months 6.98 -1.29 -3.04 7.46 -2.94 2.63 3.206 Months 7.25 3.44 1.18 10.23 2.11 5.99 6.73CAGR (%)1 Year 10.68 10.94 10.30 12.80 10.10 10.66 11.092 Years 8.69 7.76 7.86 8.77 7.67 8.22 9.643 Years 10.73 10.69 10.65 11.11 10.33 10.20 11.265 Years 9.48 8.91 8.93 9.87 8.83 9.10 9.45Inception Date 28-Mar-12 21-Oct-95 11-Sep-00 14-Jul-00 25-Nov-99

Devang Shah Prasad Dhonde Shobhit Mehrotra & Rakesh Vyas

Suyash Choudhary

Abhishek Bisen

Exit Load Nil for 10% of investment and

1% for remaining investment on or

before 12M, Nil after 12M

Nil Nil Nil for 10% of investment and

1% for remaining investment on or

before 365D, Nil after 365D

Nil

Fund Manager

Particulars Birla SL G-Sec-LT(G)

ICICI Pru Gilt-Invest-PF(G)

Kotak Gilt-Invest-Reg(G)

Reliance Gilt Securities Fund(G)

LONG TERM GILT

Category Average


I-Sec CompositeGilt Index

Month End AUM (Rs. Crs.) Feb-2017 658 623 539 1,347Average Maturity (Years) Feb-2017 13.14 17.34 11.68 8.08Month End YTM (%) Feb-2017 7.05 7.56 7.34 6.95 -Simple Annualised Returns (%)3 Months -3.07 0.65 -4.54 1.82 0.45 3.206 Months 3.56 6.64 3.37 7.93 6.38 6.73CAGR (%)1 Year 10.75 13.76 11.53 14.27 12.66 11.092 Years 8.27 9.92 8.55 10.07 9.10 9.643 Years 11.46 13.27 11.69 13.02 11.97 11.265 Years 9.65 10.36 9.45 10.89 10.06 9.45Inception Date 28-Oct-99 19-Nov-03 29-Dec-98 22-Aug-08Exit Load Nil Nil Nil Nil

Kaustubh Gupta Manish Banthia & Anuj Tagra

Abhishek Bisen Prashant Pimple

I-Sec Li-Bex


March 31, 2017



22

Fund Manager

Particulars Birla SL MIP II-Savings 5(G)

Birla SL MIP II-Wealth 25(G)

HDFC MIP-LTP(G)

Reliance MIP(G)

MONTHLY INCOME PLANS (MIP)

Category Average


Crisil MIP Blended

Index

Month End AUM (Rs. Crs.) Feb-2017 293 1,540 3,759 2,516 Average Maturity (Years) Feb-2017 12.52 11.17 11.27 10.04Absolute Returns (%)3 Months 1.21 6.66 3.60 2.98 3.20 2.426 Months 2.03 4.23 4.50 3.57 3.61 3.89CAGR (%)1 Year 11.67 20.48 16.89 12.08 12.44 12.302 Years 8.81 10.97 9.43 7.37 8.18 8.923 Years 11.73 16.10 13.30 12.39 11.31 11.375 Years 10.38 13.81 11.28 10.75 10.07 9.92Inception Date 22-May-04 22-May-04 26-Dec-03 12-Jan-04Credit Quality (%) Feb-2017AA/Equiv 0.71 14.61 6.66AA+ 1.11 0.52 0.88 9.84AAA & Equiv 6.99 6.18 7.84 20.92Cash & Equivalent 7.65 7.63 4.86 4.62A/Equiv & Others 8.63 2.65 7.83 5.38SOV 65.88 52.05 38.28 25.48

Satyabrata Mohanty Satyabrata Mohanty & Pranay Sinha

Prashant Jain &Shobhit Mehrotra

Sanjay Parekh & Amit Tripathi

Exit Load 1% on or before 540D, Nil after 540D

Nil upto 15% of units,1% in excess of

limit on or before 365D and Nil after

365D

Nil for 15% of investment and 1%

for remaining Investment on or

before 1Y, Nil after 1Y

Nil for 10% of investment, 1% if exceeding 10% of invesment on or

before 12M, Nil after 12M

Exposure (%)Debt 82.60 62.74 70.16 75.57Equity 9.74 29.38 24.27 19.81Cash & Equivalent & Others 7.65 7.88 5.57 4.62


March 31, 2017



Mutual Funds investments are subject to market risks, read all scheme related documents carefully. There is no assurance or guarantee that the objectives of the Scheme will be achieved. Investors are requested to read the Scheme Information Document, Statement of Additional Information and Key information Memorandum for Scheme specific relevant details & risk factors. Aditya Birla Money Mart Limited (ABMML), make no warranties or representations express or implied on such product. ABMML accept no liability for any damages or loss however caused in connection with the use of or reliance on product or ralated services.

EQUITY FUNDS

Please refer to RISKOMETER on page no for all Risk related information about the above mentioned schemes. 27

Birla SL Equity Fund(G)Birla SL Top 100 Fund(G)

Canara Robeco Infrastructure Fund-Reg(G)DSPBR Opportunities Fund-Reg(G)Franklin India Smaller Cos Fund(G)

Franklin Build India Fund(G)ICICI Pru Balanced Advantage Fund(G)

ICICI Pru Top 100 Fund(G)ICICI Pru Value Discovery Fund(G)IDFC Classic Equity Fund-Reg(G)

Kotak 50(G)Mirae Asset Emerging BlueChip-Reg(G)

Reliance Banking Fund(G)SBI Magnum MidCap Fund-Reg(G)

DEBT FUNDSICICI Pru Income Opportunities Fund(G)

HDFC Banking and PSU Debt Fund-Reg(G)Kotak Medium Term Fund(G)

SATELLITE FUNDS


1 Month 65.28 65.19 0.09

3 Month 65.81 65.60 0.21

6 Month 66.57 66.32 0.25

12 Month 68.14 67.84 0.30

Rs./$ Forward NDF Spread

Data as on 4th April

5Y - 1Y 0.602 0.65

10Y - 5Y -0.169 -0.12

15 -10Y 0.650 0.65

30 -15Y -0.102 -0.10

(bps) (bps)31-Mar-17 28-Feb-17G-Sec Spread

MACRO INDICATORS

Benchmark SecYield

91D TB 5.78 6.10 -32182D TB 5.87 6.16 -29364D TB 6.10 6.21 -11

G-Sec 1 Yr 6.26 6.34 -8G-Sec 5 Yr 6.86 6.99 -13

G-Sec 10 Yr 6.69 6.87 -18

31-Mar-17 28-Feb-17Change [bps]

1 Month 6.16 6.02 14 6.50 6.58 -83 Month 6.20 6.31 -11 6.61 6.84 -231 Year 6.67 6.66 1 7.24 7.34 -10

CD Rates (%)Change [bps]

CP Rates (%)Change [bps]

31-Mar-17 28-Feb-17 31-Mar-17 28-Feb-17Tenure

1 year 6.40 6.40 0 6.72 6.61 113 year 6.41 6.45 -4 6.51 6.35 165 year 6.62 6.68 -6 6.83 6.75 8

OIS - MIBORChange [bps]

MIFOR SwapsChange [bps]


1 Year 6.94 6.92 2 68 58 105 Year 7.41 7.45 -4 55 46 9

10 Year 7.65 7.80 -15 96 93 3

YieldChange [bps]

Spread(bps)Change [bps]


AAA CORPORATE BOND YIELD AND SPREAD

1 Year 7.35 7.40 -5 109 106 35 Year 7.84 7.93 -9 98 94 4

10 Year 8.11 8.23 -12 142 136 6

YieldChange [bps]

Spread(bps)Change [bps]


AA CORPORATE BOND YIELD AND SPREAD

Average Repo 2,150 2,237

Average Reverse Repo 36,340 11,913

Rs. Crs Mar-17 Feb-17

Average MSF Borrowings 991 1,392

Rs. Crs Mar-17 Feb-17

Call rate 6.04 5.95

MIBOR O/N 7.37 6.05

MIBID O/N 7.73 6.05

Particulars (in%) 31-Mar-17 28-Feb-17 WPI [Feb-17] 6.55 5.25

CPI [Feb-17] 3.65 3.17

IIP [Jan-16] 2.7 -0.4

Indicators Latest Previous


25

Indicator Latest Previous Indicator Latest Previous

Repo 6.25 6.25 CRR 4.00 4.00Rev Repo 5.75 5.75 SLR 20.50 20.50Bank Rate 6.75 6.75 MSF 6.75 6.75


Date/Countries 31-Jan-17 30-Dec-16 30-Nov-1610 Year Benchmark Yields [%]

US 2.40 2.36 2.45 2.43 2.37UK 1.14 1.15 1.42 1.24 1.42Japan 0.07 0.05 0.09 0.05 0.02Spain 1.66 1.66 1.59 1.39 1.55Germany 0.33 0.21 0.44 0.21 0.28France 0.96 0.89 1.04 0.68 0.76Italy 2.31 2.09 2.27 1.83 1.99Brazil 10.11 10.25 10.94 11.46 11.90China 3.31 3.36 3.36 3.07 2.94India 6.69 6.87 6.41 6.52 6.25

28-Feb-1731-Mar-17

MACRO INDICATORS

Data as on 4th April

Currency 1 Year 5 Year 10 year

USD 1.34 1.94 2.29

EUR -0.31 0.14 0.72

GBP 0.37 0.80 1.13

JPY 0.03 0.08 0.25

Swap Rate

Nymex Crude ($/bbl) 50.60 52.61 53.77

Brent Crude ($/bbl) 52.83 56.36 56.82

Gold ($/Oz) 1247.30 1231.90 1156.40

Silver ($/Oz) 18.24 17.71 16.16

Aluminium ($/ton) 1962.50 1949 1685

Copper ($/ton) 5837.50 6016 5644

Commodity 1 M Ago 3 M Ago31-Mar-17

•US$/INR 64.85 66.70

Euro/$ 1.07 1.06

$/Yen 111.23 112.16

GBP/$ 1.25 1.25

$/SEK 6.88 6.87

CurrencyFOREX

31-Mar-17 28-Feb-17Tax Free Bonds

Yield

31-Mar-17 28-Feb-17

8.20 % NHAI 2022 6.13% 6.11%

8.00% IRFC 2022 6.17% 6.14%

8.20% PFC 2022 6.11% 6.11%

8.10% HUDCO 2022 6.25% 6.13%

7.93% REC 2022 6.26% 6.11%

Equity 2,367 2,040 9,642

Debt 40,085 38,830 110,020

MF Inflows (Rs. Crs.) Mar-17 YTDFeb-17

Equity 3,490 9,902 43121

Debt 680 5,960 29676

FII Inflows (Rs. Crs.) Mar-17 YTDFeb-17

** MF Flows are updated as on 31st March ** FII Flows are updated as on 31st March

T-Bills DatePrice Yield

Latest Cut off

Amount (Rs. Crores)

91 days 29-Mar-17 98.57 5.82 6000182 Days 22-Mar-17 97.07 6.05 4000364 Days 29-Mar-17 94.23 6.14 4000

T-Bills DatePrice Yield

Previous Cut off

Amount (Rs. Crores)

91 days 22-Mar-17 98.56 5.86 6000182 Days 08-Mar-17 97.03 6.14 4000364 Days 15-Mar-17 94.19 6.19 4000

26

EQUITY PMS

Name PortfolioManager

Absolute (%)

1 M 3 M 6 M 1 Yr 2 Yr 3 Yr 5 Yr

CAGR (%)

SinceInception

InceptionDate

OTHER OFFERINGS


Aditya Birla Money Core & Satellite Vivek Mahajan 5.66 19.74 9.26 37.94 NA NA NA 31.92 Apr/15Benchmark Index: NIFTY 100 3.23 12.94 7.04 20.87 5.41 12.78 12.72 ASK Growth Gaurav Misra 4.45 17.26 7.34 32.69 13.57 28.25 23.05 21.59 Jan/01Benchmark Index: NIFTY 50 3.31 12.07 6.53 18.55 3.94 11.01 11.60 ASK Indian Entrepreneur Portfolio (IEP) Sumit Jain 5.22 15.16 3.07 24.93 9.21 27.30 25.61 20.95 Jan/10Benchmark Index: S&P BSE 500 3.74 14.46 7.96 24.02 6.91 15.03 13.31 ASK India Select Sudhir Kedia 3.72 14.73 3.08 24.70 10.76 28.49 26.39 19.51 Jan/10Benchmark Index: S&P BSE 100 3.30 13.21 7.11 21.17 5.02 12.27 12.29 Ask Life Gaurav Misra 5.42 13.99 2.30 19.88 5.23 18.56 17.96 18.63 Sep/08Benchmark Index: S&P BSE 200 3.45 13.69 7.32 22.47 6.22 14.17 13.08 Ask Strategic Sudhir Kedia 5.27 16.53 6.81 28.79 9.84 30.14 25.37 17.17 Dec/09Benchmark Index: S&P BSE 200 3.45 13.69 7.32 22.47 6.22 14.17 13.08 Birla SL Select Sector Portfolio Vishal Gajwani & 7.40 21.20 8.20 31.00 18.10 40.30 32.80 20.70 Aug/09

Natasha LullaBenchmark Index: NIFTY 500 3.71 14.50 8.12 23.91 7.03 15.22 13.61 Birla SL PMS Core Equity Portfolio (CEP) Vishal Gajwani & 3.70 16.30 2.70 24.60 16.20 39.70 34.40 21.30 Apr/08

Natasha LullaBenchmark Index: NIFTY 500 3.71 14.50 8.12 23.91 7.03 15.22 13.61 Edelweiss PMS Hexagon Portfolio Sahil Shah 3.70 10.90 10.10 42.10 NA NA NA 19.40 Sep/15Benchmark Index: S&P BSE 200 3.45 13.69 7.32 22.47 6.22 14.17 13.08 Kotak Pharma Anshul Saigal NA NA NA NA NA NA NA NA Sep/16Benchmark Index: Nifty Pharma -1.64 1.40 -9.16 -5.26 -9.96 10.90 15.61 Motilal Oswal IOP Manish Sonthalia, 4.17 20.43 14.23 59.57 20.30 30.24 21.81 17.49 Feb/10

Varun GoelBenchmark Index: 4.35 19.83 11.57 34.85 14.99 25.90 17.38 Nifty Free Float Midcap 100Motilal Oswal NTDOP Manish Sonthalia 3.88 17.47 5.75 37.84 18.72 34.42 31.53 18.79 Dec/07Benchmark Index: 4.35 19.83 11.57 34.85 14.99 25.90 17.38 Nifty Free Float Midcap 100Motilal Oswal Value Strategy Manish Sonthalia 4.24 14.02 3.80 18.92 3.49 19.96 15.67 25.06 Mar/03Benchmark Index: NIFTY 50 3.31 12.07 6.53 18.55 3.94 11.01 11.60

Performance as on March 31, 2017The performance details mentioned above are as shared by the respective portfolio managers.

SECONDARY BOND MARKET OFFERINGS

Available Bonds Tenure Credit Rating Indicative Yield (%)*

Magma Fincorp Ltd. Perpetual AA- 11.80%Cholamandalam Investment & Co Ltd Perpetual AA- 10.15%Indian Overseas Bank (Call Option- Feb 2020) BBB 10.95%Bank of India (Call Option- June 2021) AA- 9.40%IDBI Bank (Call Option- Jan 2022) A- 10.50%Andhra Bank (Call Option- Aug 2021) AA- 9.45%

*Indicative yield as on April 8, 2017Contact us for more offerings

Perpetual

RISKOMETER

27

RISKOMETER : SEBI's Mutual Fund Advisory committee had concurred that the prevailing 3-level classification of scheme risk determined by colour coding (brown for high risk, yellow for medium risk and blue for low risk) is inadequate to calibrate risk adequately across all mutual fund products. Hence there was a need to increase the levels of risk depiction from 3 to 5 to accommodate a finer categorization of risk across the spectrum of MF products. Therefore the colour coding has been replaced by a 'Riskometer' as an easier to understand pictorial risk grading system.

Levels of RiskRisk Level Interpretation 1. Low Level Principal At Low Risk 2. Moderately Low Principal at moderately low risk 3. Moderate Principal at moderate risk 4. Moderately High Principal at moderately high risk 5. High Principal at high risk

Riskometer

Scheme Names

Axis Liquid Fund(G)Birla SL FRF-Short Term Plan-Ret(G)ICICI Pru Money Market-Ret(G)Invesco India Liquid-Reg(G)Kotak Floater-ST(G)Reliance Liquid-Treasury-Ret(G)Sundaram Money Fund-Ret(G)Tata Money Market(G)

Riskometer

Scheme Names

Axis Short Term Fund(G)Axis Treasury Advantage Fund(G)Birla SL Savings Fund(G)Birla SL Short Term Fund(G)DHFL Pramerica Ultra ST(G)Edelweiss Arbitrage Fund-Reg(G)HDFC Banking and PSU Debt Fund-Reg(G)HDFC FRIF-Short Term Plan(G)HDFC Short Term Opportunities Fund(G)ICICI Pru Flexible Income Plan(G)IDFC Arbitrage Fund-Reg(G)Kotak Equity Arbitrage Scheme(G)Reliance Money Manager Fund(G)Reliance STF(G)SBI Arbitrage Opportunities Fund-Reg(G)SBI Ultra Short Term Debt Fund(G)UTI Treasury Advantage-Reg(G)

Riskometer

Scheme Names

Axis Income Fund(G)Birla SL Dynamic Bond Fund-Ret(G)Birla SL G-Sec-LT(G)Birla SL Income Plus(G)Birla SL Medium Term Fund(G)Birla SL MIP II-Savings 5(G)Birla SL ST Opportunities Fund(G)Birla SL Treasury Optimizer Plan-Ret(G)DHFL Pramerica Short Maturity Fund(G)DSPBR Income Opportunities Fund-Reg(G)HDFC Corporate Debt Opportunities Fund-(G)HDFC High Interest Fund-Dynamic Plan(G)HDFC Income Fund(G)HDFC STP(G)ICICI Pru Dynamic Bond Fund(G)ICICI Pru Equity-Arbitrage Fund(G)ICICI Pru Gilt-Invest-PF(G)ICICI Pru Income Opportunities Fund(G)ICICI Pru Short Term Plan(G)IDFC SSIF-Invest-Reg(G)Kotak Bond Fund - Plan A(G)Kotak Gilt-Invest-Reg(G)Kotak Medium Term Fund(G)Reliance Dynamic Bond(G)Reliance Gilt Securities Fund(G)Reliance MIP(G)Reliance Reg Savings Fund-Debt Plan(G)Tata Dynamic Bond Fund-Plan A(G)

Riskometer

Scheme Names

Birla SL Advantage Fund(G)Birla SL Balanced '95 Fund(G)Birla SL Equity FundBirla SL Frontline Equity Fund(G)Birla SL MIP II-Wealth 25(G)Birla SL Tax Relief '96(G)Birla SL Top 100 Fund(G)Canara Rob Emerg Equities Fund-Reg(G)DSP BR Balanced Fund-Reg(G)DSP BR Opportunities FundDSP BR Tax Saver Fund-Reg(G)Franklin India Bluechip Fund(G)Franklin India High Growth Cos Fund(G)Franklin India Prima Fund(G)Franklin India Smaller Cos Fund(G)Franklin India Taxshield(G)HDFC Balanced Fund(G)HDFC Mid-Cap Opportunities Fund(G)HDFC MIP-LTP(G)ICICI Pru Balanced Advantage Fund(G)ICICI Pru Balanced Fund(G)ICICI Pru Focused BlueChip Equity Fund(G)ICICI Pru LT Equity Fund (Tax Saving)(G)ICICI Pru Value Discovery Fund(G)ICICI Pru Top 100 Fund(G)IDFC Classic Equity FundKotak 50(G)Kotak Select Focus Fund(G)Mirae Asset Emerging BlueChip-Reg(G)Reliance Reg Savings Fund-Balanced Plan(G)Reliance Small Cap Fund(G)Reliance Tax Saver (ELSS) Fund(G)Reliance Top 200 Fund (G)SBI BlueChip Fund-Reg(G)SBI Magnum MidCap Fund-Reg(G)

(G)

(G)

(G)Riskometer

Scheme Names

Canara Rob Infrastructure Fund-Reg(G)Franklin Build India Fund(G)Reliance Banking Fund(G)


DISCLAIMER


Publisher, Printer and Editor : Ananth Sandeep SundurOwner : Aditya Birla Money Mart Limited, Corporate Office One India Bulls Centre, Tower 1, 18th Floor, Jupiter Mill Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai 400 013. Tel. No: 91-22-4356 7000 Fax No: 91-22-4356 7266, CIN: U61190GJ1997PLC062406. Designed and Printed at Micro Graphics, Graphic Designers and Commercial Printers, 137, Pragati Industrial Estate, N. M. Joshi Marg, Lower Parel, Mumbai - 400011, Tel.: 66634670/71. For advertisement contact: Michelle Banerjee, Email:[email protected]. The information published is as per the data provided by various Mutual Funds. “Though sufficient care has been taken, to provide the correct rates, however ABMML does not guarantee the accuracy of the data provided herein. As a potential investor, you are advised to check the updated rates and other Terms & Conditions on the manufacturer's website before making any investments". The views/opinions expressed in the various articles are that of the author and the company may not subscribe to the same either in part of in full. Any person investing on the basis of the data published in Investime will be doing so at their own risk and are advised to consult your certified financial planner before taking any investment decision. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Ananth Sandeep SundurEditor

Contact InformationAditya Birla Money Mart LimitedCorporate Office: One India Bulls Centre, Tower 1, 18th Floor, Jupiter Mill Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai 400 013.Registered Office: Indian Rayon Compound Veraval Gujarat 362266, E-mail:[email protected]: U61190GJ1997PLC062406 ,Tel No: 91-22-4356 7000 Fax no: 91-22-4356 7266

EDITORIAL


Ananth Sandeep SundurEditorAditya Birla Money Mart Limited

As we enter into a new financial year, India remains to be a bright spot among the global investors. Equity markets are scaling new highs backed by high pace growth oriented reforms by the government, a strong mandate for the BJP in the recently concluded state elections, etc. By the end of March, the government of India has achieved a milestone in the proposed GST with Lok Sabha approving four bills thereby taking GST closer to reality. GST is expected to be introduced from July 1 which would bring-in one-tax system throughout the country. This would not only be an achievement for the government, but also will bolster global investors’ confidence on India. The FII flows have changed its course in the last two months. From October 2016 till January 2017, FIIs have been net sellers of Indian equity and debt markets. The trend has just reversed in the last two months with approximate net FII inflows of Rs. 30,000 Crs and Rs 26,000 Crs into Indian equity and debt markets respectively in the month of march 2017 alone.

On the global front, policy uncertainties again took the centre stage. U.S administration faced a major setback due to the failure of the republicans to win conservative Freedom Caucus votes before a House vote on the AHCA (The American Health Care Act: the Republicans’ bill to replace Obamacare). This failure has created a sense of uncertainty over Mr. Trumps’ upcoming tax reforms. Markets would be eager to see how the tax reforms would be implemented which would win back global investor’s confidence on U.S government’s ability to implement path breaking reforms as promised during the U.S. Presidential elections. Trade tension s between U.S. and China have peaked in the month of March. But with a proposed 100 day plan, US and China seems to have come to a consensus to ease immediate trade tensions.

Gold in the last quarter of 2016-17 closed in positive mainly due to weaker dollar, political uncertainty triggered by BREXIT, elections in the European Union, uncertain policies of U.S. government, etc. The precious metal witnessed high volatility in March, with prices dropping heavily in the first half of the month and then recovering fully towards the close of the month and settling strong - making a good case for further gains in the near-month.

Indian Rupee continued its winning streak outperforming its Asian peers touching almost 17-months high against the US Dollar in March. Improving macroeconomic picture, BJPs historic win in the state elections, etc on the domestic front and dovish rate hike stance by the U.S Fed, policy uncertainty in the U.S on the global front have fuelled this strengthening of Indian rupee.

Overall, we remain constructive on the Indian markets from a medium to long term perspective. Stepping into the new financial year, Q4 earnings and GST roll out would be some of the key events which might trigger a rally in the Indian equity markets going ahead.

Investime Apr 2017 - Aditya Birla Group - April...The FII flows have changed its course in the last...

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