Equity funds upbeat as markets recover

Equity funds upbeat as markets recover

Indian equity markets registered positive returns in July on betterthan-expected April-June earnings and sound global cues. The markets, however, were negatively affected during the early part of the month, owing to disappointments from the Budget, which lacked the much expected economic reforms.

Also See India Large-Cap (Graphics)

During the month, the Bombay Stock Exchange’s Sensex and the National Stock Exchange’s Nifty registered 8.1% and 8.05% gains, respectively.

Mid-cap stocks outperformed their large- and small-cap counterparts, as measured by the BSE Mid Cap Index, which registered a 9.7% gain, while the BSE Small Cap Index was up 8.1%. Foreign institutional investors net deployed Rs11,000 crore in equities and Rs2,100 crore in debt instruments during the month.

Mutual funds net invested Rs1,150 crore in equity market and Rs28,120 crore in fixed income instruments during the month. From a sector perspective,the automobile industry registered the largest gain of 25%, as measured by the BSE Auto Index, driven by increased consumption amid benign interest rates.

The BSE FMCG Index posted the second best gain of 21%. In order to merit funds’ long-term performance, we have ranked funds based on their one-year Morningstar risk-adjusted return for this review.

Graphics by Ahmed Raza Khan / Mint