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Team Research
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MOSL: Morning India (01/July/22): 1. Mutual Funds (Channel checks); 2. Financials; 3. Maruti Suzuki; 4. EcoScope

Morning India (01/July/22): 

Today’s top research idea
Mutual Funds Channel checks: Equity flows muted; Debt outlook positive
We interacted with a few large Mutual Fund distributors (having AUM in excess of INR10b) and institutional sales representatives to sense the pulse of customer behavior in the current environment. 
-    Correction in equity markets and a sharp increase in the 10-year G-Sec yield play a meaningful role in gauging customer interest for investing in Mutual Funds. 
-    Over the past couple of months, a few major trends have emerged: a) absence of NFOs because of the regulation, b) decline in AUM, c) sustained high outflows from the debt segment and d) decline in new SIP account openings. ? Our interactions with the channel partners indicate the following key points: 1) slowdown in flows is emerging from the business community where there are working capital-related pressures, 2) commission payouts have not been increased, 3) slowdown in SIP accounts owing to Fintech players, 4) HNI's inclination towards longterm debt funds is improving and 5) large institutions are expecting further rate hikes and will commit to substantial investments in due course.

Piping hot news
Bad loans of banks expected to decline further to 5.3% by March 2023: RBI report
The Reserve Bank on Thursday said the bad loans of banks are expected to further decline to 5.3 per cent of total advances by March 2023 from a six-year low on the back of growth in credit and declining trend in the stock of NPAs. However, it cautioned that the proportion of bad loans may increase if the macroeconomic environment worsens. The gross non-performing asset (GNPA) ratio of banks fell to a six-year low of 5.9 per cent in March 2022.

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Motilal Oswal
Motilal Oswal

​Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance. 

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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