-- In India, improvement in high-frequency macro data, healthy start to 4QFY18 earnings season and robust domestic flows kept the market strong. However, rising crude prices and currency depreciation does remain a cause of concern
-- In the last 1 month, Banks and NBFC’s in PMS portfolios delivered 12% return vs BSE Financials Index which was up 5%
-- We currently have around 27% exposure to Financials, with almost nil exposure to PSU’s and large private corporate banks like Axis and ICICI Bank, both of which are affected by asset quality stress and leadership concerns
-- Currently, our portfolio has higher exposure to Financials & Consumer Discretionary, where there are visible green shoots, despite weakening macro situation
-- Earnings growth will drive the next leg of returns over the next 2-3 years post the valuation multiple re-rating witnessed in the current rally