Series 84 – Market Views and Call for Capital from ITUS

Over the last few months, we have spoken about the market from the 3 lenses of : i) Earnings, ii) Liquidity, iii) Valuation.

To Recap –

1. Earnings: Earnings were broad based last few years and we see them narrowing from here. We see signs of this starting September quarter and continuing into the next few quarters
2. Liquidity: While the DII flows are strong and are expected to, we do not expect FII flows to come back immediately. While structurally, from a longer term perspective, we expect both to be supportive, from a near term (2-3 quarter perspective) we expect increased volatility
3. Valuations: Valuations in India have been higher than the median for a while now. The former 2 need to be supportive to ensure these valuations are within context.

With the above macro, we expect volatility to continue in the market over the next 3-6 months.

Here is what we are doing –

This volatility would be a good time to add capital into the markets, we are delivering this message to all our investors and partners.
We would be investing this from a bottom – up perspective in a staggered way (we would want to deploy this over the next 4 months)
Our bias continues to be into large caps with a sectoral bias of pharma, non-lending financials, consumer durables and discretionary , and power

We have written about Capital calls and why these capital calls are important and adding capital during these times makes sense. Please access the same with the link below –

Series 55 – Capital Call and our thoughts at ITUS from Fund Manager’s Desk – ITUS Capital

 

We also keep writing to you about our SIP program that presents investors with a convenient avenue to regularly infuse capital into the client’s portfolios. Feel free to check out the benefits for your clients. If you need more info, reach out to your dedicated relationship manager at [email protected].

These weekly episodes are now available in our website for your quick read and you may access the same in the below link.

Weekly Enlightenment Archives – ITUS Capital