Equity Market Update

Quick Update

  • Equity market valuations are broadly reasonable adjusted for the cyclical low in earnings and potential for revival going forward.

 

  • We remain bullish on equities from a medium to long term perspective.

 

  • Investors are suggested to have their asset allocation plan based on one’s risk appetite and future goals in life.

 

Equity markets sentiment weakened in August after touching historic highs in July as global risk-off and local factors impacted markets. The Nifty Index was down 1.6 percent in the month of August, while S&P Midcap Index was marginally up by 0.98 percent.

A key event for the month was the systematic crackdown on shell companies (which have no active business operations or assets) and is perhaps one of the most tangible offshoots of demonetisation drive, which aimed to hit tax evasion and move India toward cashless, digital transactions that leave a paper trail. Sebi ordered stock exchanges to effectively freeze trading in 162 companies. These companies are part of longer list of 331 suspected shell companies provided by Sebi. While this impacted market sentiment especially in the midcap space, this is a long term positive in the overall efforts by the government to reduce corruption and black money laundering.

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DISCLAIMERS and RISK FACTORS

Data as on 31st August 2017. Source of data: Bloomberg, ACEMF

Disclaimer: Past performance may or may not be sustained in the future. Sector(s) / Stock(s) / Issuer(s) mentioned above are for the purpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation. The fund manager(s) may or may not choose to hold the stock mentioned, from time to time. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s).

Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to Rs. 1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC) Risk Factors: Axis Bank Limited is not liable or responsible for any loss or shortfall resulting from the operation of the scheme.

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.