{LONGTERMINVESTORS} Mutual Fund Review - April, 2016

Mutual Fund Review - April, 2016

 

Equity market outlook

 

• Global markets also seem to have stabilised after a rebound in commodity prices, particularly crude oil. The further economic stimulus measures announced by the European Central Bank (ECB) and improving US economic data provided the much needed sentiment boost for global investors. Importantly, emerging markets witnessed the return of foreign inflows with most emerging markets outperforming in March 2016 on rising expectation that the next hike in US interest rates could be somewhat delayed. The US dollar fell in value against all emerging market currencies indicating the risk on trade
• Markets have triggered a positive structural turnaround during the current up move post Budget session bottom of 6825 as the index has posted a faster retracement of a major falling segment for the first time in 13 months
• We expect the markets to enter a consolidation phase, going forward, to work off the overbought conditions developed after the strong rally in March. In the coming month, we expect the broader consolidation to pan out in the range of around 24000 to 26000 on Sensex levels while stock specific activity will remain in focus at the onset of quarterly earnings season. We believe any dips to form a higher bottom in the coming month should be used as an incremental buying opportunity. We do not foresee the benchmarks going below the near term base of around 24000 levels on the BSE Sensex

 

Debt market outlook

 

• The overall liquidity measures announced are extremely positive for funds at the sort to medium term maturity papers. Therefore, bulk of the debt investment should be in good quality short-term debt funds. Ultra short-term debt fund and liquid funds are likely to benefit from the fall in short-term yields
• Although the outlook on G-sec yields remains positive, the duration strategy should be played through actively managed income or dynamic bond funds. They will be able to make swift duration change within G-secs or switch between corporate bonds and G-Sec within specific duration

 

For details, click on the link below:

http://content.icicidirect.com/mailimages/ICICIdirect_MonthlyMFReport.pdf

 

Research Desk |ICICIdirect.com|

 

ICICI Securities Ltd |Akruti Trade Centre, 1st Floor |Road No. 7, MIDC | Andheri (East)| Mumbai 400 093|

Email: research@icicidirect.com|

 

 

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