Mumbai, Maharashtra, India
Axis Asset Management Company Ltd (AXIS AMC), the asset management arm of
India's leading private sector bank, AXIS Bank, published its 2014 edition of
Outlook, a comprehensive booklet that features the company's viewpoint of the
likely prospects for the key macroeconomic indicators. Outlook predicts that the
improvement in the global GDP growth will be driven by Western economies, with
Europe and US growing faster than in 2013. The improvements in the US economy
led the US Federal Reserve to announce QE taper.
The booklet gives a collective outlook on Global economy, Commodities, Indian
Economy, Fixed Income and Equity. It identifies the discernible developments in
various assets of the global markets and provides an insight into the likely
trends in areas such as Bonds, Equities and Multi-asset investments, the key
Global Economy – Growth Rebound, taper
Global growth in 2014 should accelerate led by Europe & US.
US Federal Reserve announced QE taper
Commodities – Likely to be another dull year
Global commodity prices moderated in 2013.
Oil market-demand supply balance may change in 2014 if supply impediments in key
OPEC countries are removed.
Gold prices remain under pressure due to both fundamental as well as technical
There has been a deviation between global and Indian prices of Gold which could
act as an overhang on the local price.
Indian Economy – growth bottoming, Consumption Slowing Down, Core Inflation
Economic slowdown has become generalised and it is affecting personal
The government is forced into fiscal tightening as global rating agencies have
threatened a downgrade.
Some signs of bottoming in the economy in recent months – most importantly the
rebound in exports.
The investment cycle remains stuck – affected by large project implementation
Any rebound to trend growth will likely to take 12-18 months.
Low growth, fiscal tightening and falling consumption should help moderate
core-CPI in 2014.
Rupee has been stable after sharp fall in Aug-Sep 2013.
Fix Income – Long term bonds should do well over medium to long term
The benchmark ten year yield went up approximately 80 bps, in 2013 and is above
its long term average.
Policy rates should stabilize as inflation moderates. This should allow bond
yields to drop over a period of time.
Equity – Markets should reward long term investors
In 2013, CNX Nifty was up while CNX mid cap and CNX small cap indexes were down.
Fills remained big buyers, while local investors continued to redeem from
The outcome of the 2014 general election should only affect short term sentiment
and not medium term direction of the equity market.
Reasonable valuations and likely rebound in earnings growth provide a compelling
case for equity with a three year perspective.
About Axis AMC
Axis AMC launched its first scheme in October 2009 and within a short span has
increased its investor base to over 5 Lac investors. It currently has a
portfolio of 32 schemes across all asset classes of which nearly half are retail
oriented schemes. Axis AMC is a joint venture between Axis Bank- India's leading
private sector bank- and Schroders - UK's largest asset manager with over assets
of over 258 billion pounds.
For more information, please visit http://www.axismf.com/
Statutory Details: Axis Mutual Fund has been established as a Trust under the
Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to
Rs. 1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis
Asset Management Co. Ltd. (the AMC). Risk Factors: The sponsor is not liable or
responsible for any loss or shortfall resulting from the operation of the
scheme. Mutual Fund Investments are subject to market risks, read all scheme
related documents carefully.
Media Contact Details
Zohar Reuben , IPAN HK+K Strategies , +91-9820920816 , +91-022-40662781 ,
Contributed via: Bloomberg Publisher WEB Service
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-0- Feb/12/2014 05:36 GMT
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