Thursday, March 17, 2016

IDFC, SBI and UTI these fund managers go for bearish bets
IDFC, SBI and UTI : SBI Mutual Fund has decreased the average maturity in long-term funds to nearly six years now compared with about 15 years in Nov.

India's RPI(retail price inflation) eased to a four month low in Feb, triggering hopes for more rate cuts beyond a 25-basis pts rate cut widely estimated on April 5th, when the RBI will announce its next bi-monthly policy.

CPI(Consumer price index) based retail inflation softened to 5.18% in Feb , lower than the 5.6% estimated earlier.IDFC Mutual Fund too has decreased its average maturity to near 4 years in income & bond funds, which is more than halved compared to previous year.

"We think that cyclical disinflation has broadly run its course," told by Mr. Suyash Choudhary , head of fixed income, IDFC Mutual Fund. "Potential upturn in rural wage and 7th Pay Commission payouts could exert some stress to inflation speed ahead.

The Reserve Bank of India has also set a 4% inflation target by Jan 2018.This, in accordance with some market participants, could be an impediment for aggressive rate cuts amid uncertainty over monsoon & inflationary wage lift.
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