Capital Allocation – Factor Strategy

In this newsletter, our aim is to elucidate the significance of Capital

Money Trends Oct 2023

Domestic equity markets rose initially after the Monetary Policy Committee of
the Reserve Bank of India maintained a status quo on repo rates and policy
stance which was in line with market expectations. In addition, the central
bank kept the growth projections of Indian economy for FY24 unchanged at
6.5% which provided additional support.

Money Trends September 2023

Domestic equity markets rose initially after the U.S. nonfarm payroll employment data for Aug 2023 came along mixed lines. The data led to anticipation that the U.S. Federal Reserve may refrain from raising interest rates in its upcoming monetary policy review which was scheduled on Sep 20, 2023.

Money Trends August 2023

Domestic equities fell after a major global credit rating agency downgraded
the credit rating of the U.S. economy which led to an all-round sell off in the
global equity market and rattled the investor risk sentiment. Sentiments were
further dampened after the Reserve Bank of India in its monetary policy
expressed concerns about the evolving inflation situation within the country.
The outcome led to worries that the key policy repo rate may remain elevated
for a prolonged period and any possibility of a rate cut may be delayed.

Money Trends July 2023

Domestic equity markets rose as S&P BSE Sensex crossed the psychological
levels of 66,500 and 19,500 respectively. The market rally was broad-based
as the mid cap segment and the small cap segment also closed the month in

CPI Inflation Update June 2023

Consumer inflation rose after touching its lowest level in more than two years

IIP Update May 2023

Industrial Output growth slowed significantly on yearly basis in May 2023

Money Trends June 2023

Domestic equity markets rose following the release of a slew of upbeat domestic macroeconomic data which indicated that the Indian economy was on a strong footing in terms of macroeconomic stability.

MPC 2023-24 April

The Monetary Policy Committee (MPC) in its first bi-monthly monetary policy review of FY24 kept key policy repo rate unchanged at 6.50% with immediate effect,after six consecutive rate hikes.

MPC 2022-23 February

The Monetary Policy Committee (MPC) in its bi-monthly monetary policy review raised key policy repo rate by 25 bps to 6.50% with immediate effect.