The S&P BSE 50 and the Nifty 50 hit a new all-time high during the month, although large-caps gained, mid-and Small Caps struggled.

For the second time in a row, Reserve Bank of India (RBI) cut the repo rate by 25bps to 6% while revising down FY20 GDP growth forecast to 7.2%.

The slowdown in the consumption story seemed more pronounced this month as high-frequency domestic growth indicators & the corporate earnings results of certain sectors continue to suggest weakness in the consumption sector.

On the macro front, February Index of Industrial Production (IIP) showed signification slowdown, the Consumer Price Index (CPI) inflation increased marginally in March to 2.9%.

Outlook

We remain constructive on India’s overall economic growth going forward. Investors continue to build equity exposure for the long term.

Select themes that we are participating in are Consumption (i.e. Consumer and Consumer Discretionary) and Financials (i.e. Private banks, Corporate Banks and select NBFCs), and Industrials (i.e. Capital Goods).

Source: ABSLAMC Research, Bloomberg, AMFI

Portfolio Action

Aditya Birla Sun Life Frontline Equity Fund (An Open ended equity scheme predominantly investing in large cap stocks):

Currently overweight on Financials while being underweight on IT, Auto. Within Financials, currently bullish on corporate banks as compared to retail banks earlier. Added an Indian commercial real estate developer to the portfolio. Also increased exposure to an Indian NBFC, manufacturing company and telecom company.

Aditya Birla Sun Life Equity Advantage Fund (formerly known as Aditya Birla Sun Life Advantage Fund) (An open ended equity scheme investing in both large cap and mid cap stocks):

The fund is overweight on Financials and Consumer discretionary and Cement while being underweight on IT. Marginal increased weight in retail focused banks also reduced positions in NBFC names. Added an Indian oil and natural gas company to the portfolio.

Aditya Birla Sun Life Midcap Fund (An open ended equity scheme predominantly investing in mid cap stocks):

The fund has a well-diversified portfolio, also positive on Pharma, Cements and Industrials while being underweight on Auto and IT. Added an Indian electrical cable manufacturing company to the portfolio, also increased weight in cement stocks.

All the Data mentioned above is as on April 2019

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.