India Market Outlook 2020

India Market Outlook 2020

India Market Outlook 2020

CY 2019 had a lot of action, both on the markets front, as well as policy measures from the government. We had the NDA regime come back to power with a landslide majority allowing it to move forward on policy decisions. The economy though ended the year with sluggishness and a very visible slowdown.

In contrast large cap equities delivered decent returns and debt markets provided spectacular gains for those who were in duration products. INR depreciation was moderate. Either ways it was a positive experience for investors whose allocations were well balanced.

However, the experience was very negative for investors who had significant allocations towards the mid and small cap segment or credit.

We would like to begin the year by providing a perspective of what has transpired, the positives and negatives that await 2020 and our opinion on portfolio positioning along with the key factors that will help change our investment thesis.

1. Recap Year 2019
1. Equity Market Performance
Equity Market Performance
2. RBI cut rates sharply during the year (135bps)
RBI cut rates
3. RBI rate cuts transmitted in bond markets as yields fell significantly across the curve with higher steepness thereby providing handsome mark to market gains in 2019
corporate bond
4. FIIs came back and domestic money continued to flow in
5. Micro market behaviour within equity markets
BSE Index
Returns Performance
US Fed reversed
US Fed resumed

2. Our view on market behaviour in 2019


3. Positives and negatives that await 2020

Positives and negatives that await 2020

4. Positioning Portfolios

1. Debt
2. Equity
5. Diversification as a theme
6. Factors to look out for
7. Important data points
Impt Data Point

All graphs in the note has been sourced from ICICI AMC outlook 2020, IDFC AMC, websites and ACE MF Database. The note has been prepared and updated as of 03 Jan 20.


This publication has been issued by Trufid Wealth Management Private Limited for the information of its customers only.

This publication does not constitute investment advice or an offer to sell, or a solicitation of an offer to purchase or subscribe to any investment.

The information herein is derived from publicly available sources that Trufid considers reliable but which has not been independently verified.

Whilst every care has been taken in compiling the information, Trufid makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness.

Expressions of opinion are those of Trufid only and are subject to change without notice.

Opinions expressed herein do not have any regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this publication.

Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies that may have been discussed in this publication and should understand that the views regarding future prospects may or may not be realized.

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