• The equity markets were driven by Foreign Portfolio Investment (FPI) flows particularly the Exchange Traded Fund (ETF) flows.

• As the dollar index slid, Emerging markets attracted more flows into equities which set a multiyear record on a monthly basis.

• On the earnings front, more than 2/3rd of the Nifty companies reported have had inline or above estimated numbers. There is visibility of corporate earnings coming back.

• The Union budget was presented which was both prudent and credible considering the political compulsions in a pre-election year and fiscal pressures.

Outlook

• While you might have read a lot of its impact in all forms of media, we would like to reiterate that its growth positive with its focus on rural and small businesses.

• As investors for long term, set your eyes on your goals. It is recommended to rebalance your portfolios to have right allocation in equities. Aim to make volatility your friend by committing more capital on bad days if any.

Source: Bloomberg, ABSLAMC Research

Portfolio Action

• Aditya Birla Sun Life Advantage Fund (An Open-Ended Growth Scheme):

  Exposure to an Indian conglomerate holding company was increased as major part of the capex is over and it would contribute to next fiscal’s earnings. In financials, we continue to prefer private sector banks. We added an Indian construction company in the construction space as the order book continues to be robust.

• Aditya Birla Sun Life Equity Fund (An Open-Ended Growth Scheme):

  We increased our exposure an Indian consumer goods owing to visible signs of recovery in rural demand & normalising trade channels post GST implementation. We added on to an Indian IT company due to attractive valuations and earnings visibility while our stand on financial services continues to remain same where we would prefer private sector banks.

• Aditya Birla Sun Life Small & Midcap Fund (An Open Ended Small and Mid-Cap Equity Scheme):

  Union budget 2018-19 laid emphasis on development of rural economy, thus we bought a seed company to take exposure in the agri-product segment.

The scheme(s) may or may not have any present or future positions in these sectors

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