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MOSL: Morning India (15/June/18): 1. Fund Folio (AUM consolidates in May); 2. Voltas; 3. Zensar Tech; 4. CEAT

MOrning India (15/June/18): 1. Fund Folio (AUM consolidates in May); 2. Voltas; 3. Zensar Tech; 4. CEAT

 

Today’s top research theme

Fund Folio: AUM consolidates in May; Financials, Technology, Consumer see buying

• After rising by 6.7% in the previous month, domestic mutual funds’ (MF) equity AUM declined marginally by 0.3% MoM to INR7.98t in May.
• The fall in equity AUM was driven by a flattish performance of the markets (Nifty). While equity scheme sales were up 4.6% MoM to INR282b, redemptions rose 10.9% MoM to INR161b. Consequently, net inflows declined from INR124b in April to INR121b in May.
• Net inflows for the MF industry in CY18YTD stand at INR1.5t, 41% of which is contributed by equity funds.
• Equity AUM, as a percentage of India’s market capitalization, is at an all-time high of 5.4% (+80bp YoY, +20bp MoM).
• The month saw a notable change in sector and stock allocation of funds. On an MoM basis, the weights of Financials, Technology, Consumer and Oil increased, while those of Capital Goods, Healthcare, Autos, Metals, Infrastructure, Cement, Utilities, Telecom, Real Estate and Chemicals moderated.
• Technology (weight up 30bp MoM or 120bp YoY to 8%) overtook Capital Goods (weight down 40bp MoM or 100bp YoY to 7.7%) to take the fourth position in terms of sector allocation of mutual funds.

Piping hot news

Wholesale inflation jumps to 14-month high on costlier fuel

• Annual wholesale price inflation (WPI) accelerated in May to a 14-month high, driven by higher fuel and vegetable prices, government data showed on Thursday. Annual wholesale price index-based inflation rose to 4.43% in May, higher than 3.18% in April.