Birla Sun Life Mutual Fund: Market Outlook - December 2015

http://bit.do/dwQpR OutlookMarket secret sale page.
In this edition of "Monthly Minutes", we are covering global events & market updates, update on key macro variables & our views & recommendations post the recent monetary policy update through an AV addressed by Shravan Sreenivasula, Fund Manager. Some of the key excerpts of this production are – - The foreign investors turned sellers again after a month of buying as they pulled out USD 1.15bn from the markets. Mutual funds continued their purchasing spree for 19 months in a row as they bought Rs 4,700 crore in December. -The divergence in flows can explain the divergence of market performance. The Small cap index continues to be the best performer with a return of 2.8% followed by CNX Midcap with 0.1% and then Nifty, the large cap index with a negative return of 1.6%. Commodity prices were down across the board. Brent crude was down nearly 10% and Gold down over 5% in rupee terms. - The headline GDP number for Q2 FY16 was good at 7.4% above the consensus estimate of 7.3%. CPI moved up to 5% above consensus estimate of 4.9% due to across the board increase in prices sequentially. IIP came in at 3.6% below consensus estimate of 4.9% due to pick up in capital goods but weakness in consumer non durables. - RBI paused in the December policy and stated that "further accommodation" is possible - We believe that the incremental steps taken by the govt are positive. Some of the high frequency data points like airline passenger growth, electricity consumption, oil consumption etc show good growth. We expect earnings of corporate to move up starting next quarterly results.