Industry Synopsis
  • Total AUM as on May 31, 2011, was down 2% YoY while down 7% MoM as industry witnessed an outflow to the tune of 48,850 Crore in the month of May 2011. Read More

Markets Last Month
  • Indian equity markets traded in narrow range in the last one month with negative news flows continuing to put pressure on the markets
  • Market sentiment remain negative due to visible signs of slowdown in growth through slowdown in GDP growth, lower Index of Industrial Production(IIP), falling Purchasing Managers Index (PMI) and lower guidance by corporate
  • Sustained higher levels of global crude oil prices and elevated levels of inflation and its impact on the overall economy is keeping the investors appetite low towards equity market

Going Ahead
  • Equity markets have been showing resilience despite the global uncertainties, policy gridlock, inflation and rising rates and slowdown in earnings momentum
  • Valuations are in line with long term averages and capture the negative news to a large extent. Markets may show higher volatility in line with the global markets, however, investors should take advantage by increasing allocation to equity markets as long term outlook remains positive despite the near term headwinds
  • The current weakness in the market provides investors an opportunity to accumulate quality mutual funds. Read More