Eye on India:Retailers move to equities

Event.

    Follow the money: A collapse in gold prices and a lacklustre real estatemarket have pushed Indian retail investors towards equities. Domestic MFshave seen net inflows of US$15bn in the last 12 months (against US$6bn ofnet outflows from FY10-14) and this has been the main driver of the market asFIIs (+US$11bn LTM) took a back seat. Domestic MFs have pursued Midcaps leading to a smart 38% outperformance vs large caps. FIIs have stuck todefensive names while Domestic MFs have gone for more cyclical onesamong large caps.

    Changes to model portfolio: We have added GPPV, Dish TV, Dr Reddys,Prestige and Bharti Infratel to our model portfolio while exiting NTPC, Ideaand Sobha.

    Impact.

    Mixed macros