october december 2019 - axis bank

October – December 2019

The Indian equity market remained volatile during the quarter gone by. Over the last

few months, there has been widespread perception of slowing consumption and a

tight liquidity situation leading to economic slowdown. The government addressed it

with a ‘big bang’ reform by cutting corporate taxes.

The government has ushered in a virtuous cycle by announcing corporate tax cuts and

this along with other announced measures has the potential to unleash animal spirits.

This move however, doesn’t directly address the near-term demand weakness beyond

providing a sentiment boost, though it is an important step towards reviving the

investment cycle. Additionally, it leaves concerns around the implication on fiscal

deficit.

Global growth concerns, worsening US China trade conflicts and the stalemate

involving Brexit are also causing increased uncertainty across equity markets, India

included.

The Indian 10 year benchmark was volatile during the quarter. It was down in July 19

on the backdrop of announcement made by FM in budget, but gradually rose as

nothing materially was shaping up. Recently however, bond yields spiked on fears of

fiscal slippage post the tax cut announcement.

Benign inflation outlook, relatively low crude prices (unless they spike due to any geo-

political event) and slowing economy (Q1FY20 GDP print was reported at 5%) would

be on the top of the mind for the RBI MPC to decide on its policy rates.

Weaker than budgeted growth in tax revenue collections along with announced

corporate tax cuts may lead to fiscal slippage, despite higher than expected RBI

dividend to GoI.

Liquidity condition will continue to remain in surplus on front loading of Government

spending and slow pace of currency leakages.

We maintain a positive bias towards India equity. Investors can consider

investing in equities with a 3 to 5 year investment perspective

MARKET OVERVIEW

We remain constructive on the shorter end of the yield curve. Short Duration

funds, Corporate Bond funds, Banking & PSU Debt funds, Money Market funds,

Low Duration funds and Ultra Short Duration funds can be considered by

investors with an investment horizon commensurate with the maturity and

duration of the schemes, due to their steady accrual profile and possible capital

appreciation in case of a fall in yields.

On the sectoral front, the top performing sectors for the quarter ended September 2019

were FMCG (+3.57%) followed by marginal gain by IT (+0.10%). Whereas, all other

sectors ended in negative terrain. The bottom 3 sectors were Metal (-18.20%), PSU (-

14.98%) and Realty (-10.15%).

For H1FY20, the top 3 performing sectors were Consumer Durables (+8.45%), IT

(+2.55%) and Capital Goods (+1.21%). The bottom 3 sectors which ended the quarter in

negative terrain were Metal (-19.99%), Healthcare (-13.29%) and PSU (-12.84%).

Among Sensex stocks for the quarter ended September 2019, Asian Paints (+29.91%),

Kotak Mahindra Bank (+11.36%), and Hindustan Unilever Industries (+10.92%) were the

top performers while Yes Bank (-61.87%), Tata Motors (-33.31%) and Tata Steel (-

28.67%) were laggards.

For H1FY20, Bajaj Finance (+33.90%), Kotak Mahindra Bank (+23.10%) and Bharti

Airtel (+20.15%) were the top performers, while Yes Bank (-84.93%), Tata Motors – DVR

(-38.17%) and Tata Motors (-32.62%) were laggards.

During the quarter ended September 2019, FIIs were net sellers of equity to the tune of

Rs.22,193.10 Cr while DIIs were net buyers to the tune of Rs.53,818.92 Cr and the

domestic MFs bought Rs.43,519.95 Cr worth of equity.

During H1FY20, FIIs were net sellers of equity to the tune of Rs. 605.04 Cr while DIIs

were net buyers to the tune of Rs.58,559.11 Cr and the domestic MFs bought

Rs.50,316.21 Cr worth of equity.

Indian equity markets ended the September 2019 quarter in negative terrain. Stock

specific action was witnessed in the broader market. Mid Cap and Small Cap stocks

underperformed compared to their Large Cap counterparts. The S&P BSE Sensex was

down by 1.85% during the quarter ended September 2019, while the S&P BSE Mid Cap

and the S&P BSE Small Cap index were lower by 4.76% and 7.50%, respectively.

For H1FY20, S&P BSE Sensex was down by 0.01%, whereas S&P BSE Midcap and

S&P BSE Small Cap index was down by 8.89% and 12.35%, respectively.

EQUITY MARKET RECAP

EQUITY MARKET OUTLOOK

Despite delayed arrival of monsoon this year and 33% less rainfall in June 2019, the rains

picked up in subsequent months and by mid September, aggregate monsoon rains were

5% higher than normal. This certainly is good news for kharif production, but equally

important is the spatial and geographical distribution of the rainfall, which has been

uneven across the country. Major crops to be affected by the lower-than-LPA rainfall in

select meteorological subdivisions are: rice, pulses and sugarcane. Currently, rice and

sugar inflation is not alarming, but pulses are witnessing sustained high inflation. Any

shortfall in pulses production, therefore, will increase our dependence on imports.

Investors can look at accumulating equities with a 3 to 5 year investment

perspective

Fiscal stimulus through corporate tax reduction has created a positive sentiment among

the investors. For the companies planning to shift their production bases away from China,

the radical reform competitively positions India as an attractive alternative to its South East

Asian peers. The government’s actions clearly marks its preference for growth over fiscal

prudence; approx. Rs 1.45 lakh Cr of revenue forgone is expected to have an impact of 70

bps on the fiscal deficit. Government’s actions have ushered in a virtuous cycle of GDP

growth. This growth, though, would come with a lag depending on how the corporates put

the tax saving windfalls to use but the fiscal slippage would weigh down the debt market in

the near term.

Global growth concerns, ongoing U.S. - China trade talks and Brexit continue to raise

uncertainty across markets worldwide. However, investors’ risk appetite got enhanced to

some extent after US President Donald Trump’s remarks suggested that the US and

China were moving closer towards a trade deal. Stalemate in Brexit process continues as

we approach the deadline of Oct. 31, 2019. The possibility of extension of this deadline

along with a general election in U.K. cannot be ruled out, thus leading to further

uncertainty in the process.

The Indian equity market remained volatile during the quarter ended September 2019.

Over the last few months, there has been widespread perception of slowing consumption

and a tight liquidity situation leading to economic slowdown. The government addressed it

with a ‘big bang’ reform by cutting corporate taxes and various other measures. The mood

in the market was upbeat as investors continued to cheer the host of measures

announced. Though market saw a sharp spike for couple of days post the announcement,

the rally was short lived and part of the gains were wiped off. The S&P BSE Sensex was

down by 1.85% during the quarter ended September 2019.

Benign inflation outlook, relatively low crude prices (unless they spike due to any geo-

political event) and slowing economy (Q1FY20 GDP print was reported at 5%) would be

on the top of the mind for the RBI MPC to decide on its policy rates in Oct.’19 meeting.

With 110 bps cut (35 bps cut in Aug’19) in repo rate so far, markets are looking forward to

a repo rate cut of around 25 bps in the forthcoming meet.

LARGE CAP EQUITY FUNDS

PAST PERFORMANCE (CAGR % RETURNS AS ON 30th SEP, 2019)

CAGR 1 Year 2 Years 3 Years

Aditya Birla Sun Life Frontline Equity Fund 4.08 2.93 6.84

Axis Bluechip Fund 17.13 14.50 15.24

HDFC Top 100 Fund 4.15 6.10 9.26

ICICI Prudential Bluechip Fund 4.42 6.24 9.88

Nippon India Large Cap Fund 3.40 5.91 9.61

SBI Bluechip Fund 8.92 5.55 7.53

UTI Mastershare Unit Scheme 4.72 6.82 8.22

Category Average 6.69 6.86 9.51

Nifty 50 TRI 6.31 9.70 11.49


Data Source: ICRA MFI Explorer


Aditya Birla Sun Life Equity Fund 5.30 2.11 7.00

Axis Multicap Fund 17.09 -- --

HDFC Equity Fund 4.76 5.46 8.84

ICICI Prudential Multicap Fund -0.13 5.04 6.63

Kotak Standard Multicap Fund 8.70 6.56 10.46

SBI Magnum Multi Cap Fund 10.08 5.70 9.92

Tata Multicap Fund 9.92 -- --

UTI Equity Fund 5.33 7.96 8.95


Nifty 500 TRI 3.69 5.48 9.44

MULTI CAP EQUITY FUNDS


LARGE & MID CAP EQUITY FUNDS

FOCUSED EQUITY FUNDS




Aditya Birla Sun Life Equity Advantage Fund 0.63 -3.08 3.78

Axis Growth Opportunities Fund -- -- --

DSP Equity Opportunities Fund 8.19 4.00 8.53

IDFC Core Equity Fund 0.37 1.63 7.19

L&T Large and Midcap Fund 0.25 -0.05 6.76


NIFTY Large Midcap 250 TRI 1.45 3.29 8.54



Aditya Birla Sun Life Focused Equity Fund 5.58 3.34 7.59

Axis Focused 25 Fund 9.80 9.60 14.01

DSP Focus Fund 11.91 4.55 6.92

Franklin India Focused Equity Fund 6.52 4.64 7.81

Kotak Focused Equity Fund -- -- --

L&T Focused Equity Fund -- -- --

SBI Focused Equity Fund 13.83 10.47 11.71


Nifty 50 TRI 6.31 9.70 11.49


MID CAP EQUITY FUNDS


SMALL CAP EQUITY FUNDS


Axis Midcap Fund 9.95 11.02 12.10

DSP Midcap Fund 7.38 1.65 7.04

Franklin India Prima Fund 3.76 1.07 5.79

Kotak Emerging Equity Scheme 6.99 1.35 6.61

L&T Midcap Fund -1.64 -2.96 7.23


S&P BSE Mid Cap TRI -3.49 -3.48 3.42



Axis Small Cap Fund 17.79 8.80 10.92

Franklin India Smaller Companies Fund -4.95 -5.77 1.62

HDFC Small Cap Fund -6.46 1.31 8.55

L&T Emerging Businesses Fund -7.06 -4.44 7.22

SBI Small Cap Fund 4.04 2.72 11.97

Category Average -8.09 -13.26 -2.11

S&P BSE Small Cap TRI -7.74 -8.78 1.85



VALUE EQUITY FUNDS

EQUITY LINKED SAVINGS SCHEME (ELSS)



Aditya Birla Sun Life Tax Relief 96 -1.39 2.70 7.97

Axis Long Term Equity Fund 12.05 10.04 12.34

DSP Tax Saver Fund 12.02 5.46 9.01

IDFC Tax Advantage (ELSS) Fund -1.15 0.22 8.57

Kotak Taxsaver 8.56 5.44 8.75

L&T Tax Advantage Fund -1.03 -0.01 7.27


Nifty 500 TRI 3.69 5.48 9.44



HDFC Capital Builder Value Fund -3.29 1.99 7.28

Tata Equity P/E Fund 2.09 0.47 8.78

UTI - Value Opportunities Fund 1.62 4.66 6.37


Nifty 500 TRI 3.69 5.48 9.44



AGGRESSIVE HYBRID FUNDS


DYNAMIC ASSET ALLOCATION /

BALANCED ADVANTAGE FUNDS


Aditya Birla Sun Life Equity Hybrid 95 Fund 3.04 0.84 5.13

Axis Equity Hybrid Fund 12.65 -- --

HDFC Hybrid Equity Fund 6.94 4.53 7.99

ICICI Prudential Equity & Debt Fund 3.04 4.35 7.76

L&T Hybrid Equity Fund 2.66 1.90 6.53

SBI Equity Hybrid Fund 12.36 8.93 9.98


NIFTY 50 Hybrid Composite Debt 65:35 Index 9.06 9.00 10.15



Axis Dynamic Equity Fund 4.57 5.53 --

ICICI Prudential Balanced Advantage Fund 9.08 6.85 8.31

Kotak Balanced Advantage Fund 9.19 -- --

Nippon India Balanced Advantage Fund 6.63 5.51 8.54

Tata Balanced Advantage Fund -- -- --


NIFTY 50 Hybrid Composite Debt 65:35

Index9.06 9.00 10.15



EQUITY SAVINGS FUNDS


MULTI ASSET ALLOCATION FUNDS


Aditya Birla Sun Life Equity Savings 5.17 2.37 4.66

Axis Equity Saver Fund 7.54 7.27 7.80

DSP Equity Savings Fund 5.63 3.19 5.19

HDFC Equity Savings Fund 4.21 4.16 7.00

Kotak Equity Savings Fund 5.73 5.97 7.36

Reliance Equity Savings Fund -7.30 -2.55 2.23

UTI Equity Savings Fund 3.26 -- --


60 % CRISIL Short Term Bond Fund

40 % Nifty 50 TRI8.05 8.78 9.89



Axis Triple Advantage Fund 13.41 7.40 7.07

ICICI Prudential Multi-Asset Fund 2.84 4.61 8.69





Aditya Birla Sun Life Equity Savings 5.17 2.37 4.66

Axis Equity Saver Fund 7.54 7.27 7.80

DSP Equity Savings Fund 5.63 3.19 5.19

HDFC Equity Savings Fund 4.21 4.16 7.00

Kotak Equity Savings Fund 5.73 5.97 7.36

Nippon India Equity Savings Fund -7.30 -2.55 2.23

UTI Equity Savings Fund 3.26 -- --


60 % CRISIL Short Term Bond Fund

40 % Nifty 50 TRI8.05 8.78 9.89

THEMATIC FUNDS


ARBITRAGE FUNDS


Tata Ethical Fund 3.31 3.80 5.24


Nifty 500 Shariah TRI 2.61 3.53 9.08



Axis Arbitrage Fund 6.13 6.00 6.06

HDFC Arbitrage Fund 5.92 5.61 5.64

IDFC Arbitrage Fund 6.41 6.23 6.10

Kotak Equity Arbitrage Fund 6.22 6.22 6.16

Nippon India Arbitrage Fund 6.39 6.43 6.27

SBI Arbitrage Opportunities Fund 6.24 6.21 6.03


Nifty 50 Arbitrage Index 6.55 5.49 5.25



DEBT AND MACRO ECONOMIC OUTLOOK

July IIP rises 4.3% YoY, though gains were concentrated only in a few items

• Mining 4.9%, Manufacturing 4.2% and Electricity 4.8%; Mild steel slabs and digestive

enzymes together made up 2.2% of growth.

• Capital goods and consumer durables are weak since January which is in line with auto

slowdown and lower confidence, intermediates classification under IIP was boosted by

potential steel anomaly.

August CPI ticks up to 3.21% YoY as rise in food inflation offsets fall in fuel

• Core inflation was down at 4.20% YoY as weakness in clothing and misc. segment offset

higher gold prices.

• Vegetables prices have driven the entire rise in food’s contribution to headline inflation.

• Aug WPI inflation was unchanged at 1.08% YoY as higher food inflation was offset by

weaker fuel and manufactured products’ inflation.

Apr-Aug fiscal deficit reached 78.7% of BE targets (94.7% last year) on

higher RBI dividend

• Weaker revenue collections and corporate tax cuts to lead to fiscal slippage.

Global Central Bank turns dovish; FOMC and ECB cut rates, BoJ to take

action in October

• FOMC cuts rates by 25 bps, Powell repeats mid-cycle correction (seen as less dovish).

• ECB cuts benchmark rate by 10bps , but stresses the need for fiscal spending.

Aug trade deficit kept steady at USD 13.4 bn on higher petro imports, core

deficit ticks lower

• Core exports down are 5.6%, partly on a high base in engineering goods, electronics

looking good.

• Higher petro import volumes have kept absolute deficit steady.

G-sec yields drifted higher, in the first half of Sep, on supply concerns ( as chatter of

fiscal support by the government lingered in markets) and expectation of issuance of

new 10 yr benchmark. Yields went further higher on sharp rise in oil prices but came

down after oil pared all gains. Yields shot up sharply after FM announced corporate tax

cuts, on expectation of fiscal slippage in FY20 and higher borrowing to finance the

deficit.

Weaker than budgeted growth in tax revenue collections along with announced

corporate tax cuts may lead to fiscal slippage, despite higher than expected RBI

dividend to GoI. Liquidity condition should remain in surplus on front loading of

Government spending and slow pace of currency leakages.

We remain constructive on the shorter end of the yield curve. Short

Duration funds, Corporate Bond funds, Banking & PSU Debt funds, Money

Market funds, Low Duration funds and Ultra Short Duration funds can be

considered by investors with an investment horizon commensurate with the

maturity and duration of the schemes, due to their steady accrual profile

and possible capital appreciation in case of a fall in yields. Having said this,

one should consider aspects such as exit load, capital gains tax and asset

allocation amongst others while evaluating their investment options.

USD/INR saw steady downside, in the first half of Sep, from a peak of 72.40, in line

with stronger CNY and other emerging market currencies. However, USD/INR rose

higher in mid Sep on sharp jump in oil prices, post attack on Saudi oil installation. News

of quick restoration of oil output brought the oil prices down, and USD/INR along with it.

Heavy Equity inflows post corporate tax cuts also brought USD/INR lower.

DEBT AND MACRO ECONOMIC OUTLOOK

Weaker growth conditions and still benign inflation can allow RBI to cut rates by

another 25 bps in the forthcoming meet. However, longer end G-sec will largely be

driven by supply and OMOs.

SPECIAL ECONOMIC UPDATE

Q1FY20 CAD narrows to 2.0% of GDP on y-o-y basis on account of higher

invisible receipts

Q1FY20 CAD at USD 14.3 bn (Q1FY19: -15.8 bn): Stronger software services help

offset weaker trade

• Merchandise trade deficit was at USD 46.2 bn (Q1FY19: 45.7 bn), the increase in

deficit was on account of sharper fall in exports than imports, with surge in ex-

petroleum and gold trade deficit

• Services surplus was higher at USD 31.9 bn (Q1FY19: 29.9 bn), mainly on the back

of a rise in net earnings from travel, financial services and telecommunications,

computer and information services

• Remittances rose to USD 18.2 bn (Q1FY19: 17.2 bn) and Investment income deficit

was also higher at USD 6.8 bn (Q1FY19: 5.8), on higher dividend on FDI

Capital account surplus higher at USD 27.9 bn (Q1FY19 4.8 bn): strong pick up in

FDI flows

• FDI net inflows at USD 13.9 bn (Q1FY19: 9.6 bn), with improvement in gross inflows

• Net portfolio inflows of USD 4.8 bn (Q1FY19 -8.1 bn) on account of net purchases in

both debt and equity

• Commercial borrowings inflow at USD 6.4 bn as against an outflow of 1.3 bn in Q1

last year

• Banking capital outflow at USD 3.9 bn (Q1FY19: +10.1), despite inflow of USD 2.7

bn in NRI deposits

LONG DURATION FUNDS


GILT FUNDS


ICICI Prudential Long Term Bond Fund 15.81 7.58 7.76

Nippon India Nivesh Lakshya Fund 20.25 -- --


CRISIL Composite Bond Fund Index 14.87 7.75 7.97


HDFC Gilt Fund 11.53 6.54 6.82

ICICI Prudential Gilt Fund 17.06 8.10 8.26

Nippon India Gilt Securities Fund 16.04 8.27 8.46

SBI Magnum Gilt Fund 15.36 7.18 8.11

UTI Gilt Fund 14.41 7.35 8.50


ICRA Composite Gilt Index 16.25 8.29 8.10




DYNAMIC BOND FUNDS

*Category as per SEBI circular dated Oct 6, 2017 on Categorization and Rationalization of MF Schemes.


MEDIUM TO LONG DURATION FUNDS


ICICI Prudential All Seasons Bond Fund 10.06 6.37 7.36

IDFC Dynamic Bond Fund 14.26 7.08 7.56

Kotak Dynamic Bond Fund 12.96 8.17 8.02

SBI Dynamic Bond Fund 13.90 7.08 7.75




HDFC Income Fund 10.01 4.35 4.32

ICICI Prudential Bond Fund 11.43 6.32 6.66

IDFC Bond Fund - Income Plan 14.04 6.71 7.24

SBI Magnum Income Fund 11.23 6.24 7.23







SHORT DURATION FUNDS


Axis Short Term Fund 10.09 7.23 7.32

HDFC Short Term Debt Fund 9.94 7.58 7.60

IDFC Bond Fund - Short Term Plan 10.51 7.32 7.26

L&T Short Term Bond Fund 9.96 7.21 7.20

Nippon India Short Term Fund 9.78 6.52 6.77

SBI Short Term Debt Fund 9.96 6.94 7.13


CRISIL Short Term Bond Fund Index 10.65 7.41 7.48



CORPORATE BOND FUNDS



ABSL Corporate Bond Fund 10.57 7.66 7.76

Axis Corporate Debt Fund 6.54 6.46 --

HDFC Corporate Bond Fund 11.35 7.61 7.78

IDFC Corporate Bond Fund 9.51 6.83 7.11

Kotak Corporate Bond Fund 10.11 8.05 7.99

Nippon India Prime Debt Fund 8.26 6.92 7.09

UTI Corporate Bond Fund 11.49 -- --




CONSERVATIVE HYBRID FUNDS



Aditya Birla Sun Life Regular Savings Fund 5.91 1.56 4.68

Axis Regular Saver Fund 1.78 2.82 4.12

Franklin India Debt Hybrid Fund 7.88 4.97 5.31

ICICI Prudential Regular Savings Fund 9.43 6.73 8.03

SBI Debt Hybrid Fund 9.40 3.41 5.23


CRISIL Hybrid 85+15 - Conservative Index 12.66 7.53 7.86

BANKING & PSU DEBT FUNDS


Aditya Birla Sun Life Banking & PSU Debt Fund 10.68 7.44 7.42

Axis Banking & PSU Debt Fund 11.89 8.58 8.29

HDFC Banking and PSU Debt Fund 10.86 7.23 7.32

IDFC Banking & PSU Debt Fund 12.79 8.42 7.78






T he repor t and i n fo rm a t i on con ta i ned he re i n is of con f i den t i a l na tu re and m ean t on ly for the se l ec ted rec ip ient and

shou ld not be a l t e red in any way, t r ansm i t t ed to, cop ied or d is t r ibu ted , in any m a n n e r a n d f o rm , to any o the r pe rson

or to the m ed ia or rep rodu ce d in any f o rm , w i t hou t pr io r wr i t ten app rova l of Axis B ank . T he m a te r i a l in th is

docum en t / r ep o r t is based on fac ts , f igures and i n fo rm a t i on that are ob ta i ned f r om pub l i c l y ava i l ab l e m ed ia or o the r

sou rces be l i eved to be re l iab le and hence cons i de red t rue, cor rec t , re l iab le and accu ra te but Axis B ank does not

gua ran t ee or rep resen t (exp ress l y or im p l i ed l y) that t he s a m e are t rue, cor rec t , re l iab le and accu ra te , not m i s l ead ing

or as to i ts genu inenes s , f i tness for the pu rpose i n tended and it shou ld not be re l ied upon as such . T he op i n i on

exp ress e d ( i nc l ud i ng es t im a tes , fac ts , f i gures and forecas ts ) is g i ven as of the da te of th is d o c u m e n t is sub jec t to

change w i t hou t p rov i d i ng any pr ior not i ce of i n t im a t i on . Axis B ank sha l l have the r ights to m a k e any k i nd of changes

and a l t e ra t i ons to th is repo r t / i n f o rm a t i on as m a y be requ i red f rom t im e to t ime. Howeve r , Axis B ank is unde r no

com pu l s i on to m a in ta i n or k eep the da ta / i n fo r m a t i on upda ted . Th is repo r t / do c um en t does not m e a n an o f f e r o r

so l i c i ta t ion for dea l i ng (pu rchase or sa le) of any f inanc ia l i ns t rum en t or as an o f f i c ia l con f i rm a t i on of any t ransac t i on .

Axis B ank or any of i ts a f f i l i a tes / g roup com pan ies sha l l not be answerab l e or respons ib l e in any way for any k i nd of

loss or d a m a g e that m a y ar ise to any pe rson due to any k i nd of e r ror in the i n fo rm a t i on con ta i ned in th is d o c u m e n t or

o the rw i se . Th is d o c u m e n t is p rov i ded for ass i s tance on ly a n d shou ld not be cons t rued as the so le d o c u m e n t to be

re l ied upon for t ak i ng any k i nd of i nves tm en t dec i s i on . T he rec ip ient is h im se l f / he rse l f fu l l y respons ib l e for the r i sks of

any use m a d e of th is i n fo rm a t i on . E ach rec ip ient of th is d o c u m e n t shou ld m a k e h i s /he r o wn resea rch , ana l ys i s and

i nves t i ga t i on as he / she d e e m s fi t and re l iab le to c o m e at an i ndepende n t eva l ua t i on of an i nves tm en t in the secur i t ies

o f com pan ies m en t i oned in th is d o c u m e n t ( i nc l ud i ng the mer i ts , dem er i t s and r i sks i nvo l ved ) , and shou ld fur ther take

op i n i on of o wn consu l t an t s , adv i so rs to de te rm in e the advan ta ge s and r i sks of such i nves tm en t . T he i nves tm en t

d i scussed or v i ews exp ress e d he re i n m a y not su i t the requ i rem en t s for al l i nves tors . Axis B ank and its g roup

com pan ies , a f f i l i a tes , d i rec tors , and em p loye es m ay: (a) f r om t im e to t ime, have l ong or shor t pos i t i ons in, and dea l

(buy and /o r sel l the secur i t ies ) thereof , of c o m p a n y ( ies ) m en t i oned he re i n or (b) be e n g a g e d in any o the r t r ansac t i on

i nvo l v i ng such secur i t ies and ea rn c o m m i s s i o n / b r o k e r a g e or o the r com pensa t i on or ac t as adv i so r or

l ende r /b o r r o we r to such c o m p a n y ( ies ) or have o the r po ten t i a l conf l i c t of in teres t wi th respec t to any r e c o m m e n d a t i o n

and re l a ted i n fo rm a t i on and op i n i ons . T h e app l i cab l e S ta tu to ry Ru les and Regu la t i ons m a y not a l l ow the d is t r ibu t ion

of th is d o c u m e n t in cer ta in ju r i sd ic t ions , and pe rsons wh o are in possess i on of th is docum en t , shou ld i n fo rm

them se l ves abou t a n d fo l low, any such res t r i c t ions . Th is repor t is not m ean t , d i rec ted or i n tended for d is t r ibu t ion to,

o r use by, any pe rson or ent i ty wh o is a c i t i zen or res i den t of o r l oca ted in any local i ty, s ta te , coun t r y or o the r

ju r i sd ic t ion, whe re such d is t r ibu t ion, pub l i ca t i on , ava i lab i l i t y or use wou ld not be in con fo rm a t i o n to the law, regu la t i on

or wh i ch wou ld requ i re Axis B ank and a f f i l i a tes / g roup com pan ies to ob ta i n a n y reg is t ra t ion or l i cens i ng

requ i rem e n t s wi th in such jur i sd ic t ion. Ne i t he r Axis B ank no r any of i ts a f f i l i a tes , g roup com pan ies , d i rec tors ,

em p loye es , agen ts or rep resen ta t i ves sha l l be he l d respons ib l e , l i ab le f o r any k i nd of consequen t i a l d a m a g e s

whe the r d i rec t , ind i rec t , spec ia l o r consequen t i a l i nc l ud i ng but not l im i ted to los t revenue , los t pro f i ts , no t i ona l losses

that m a y ar ise f rom or in connec t i on wi th the use o f the i n fo rm a t i on . P rospec t i ve inves tors and o the rs are cau t i oned

and shou ld be a ler t that any f o rwar d - l ook i n g s ta tem en ts are not p red i c t i ons and m a y be sub jec t to change w i t hou t

p rov i d i ng any not i ce . Pas t pe r fo rm a nc e shou ld not be cons i de red as a re fe rence to fu ture pe r fo rm a n ce . T he

d i sc l osu res of in teres t s ta tem en ts if any i nc l uded in th is d o c u m e n t are p rov i ded on ly to enhance the t ranspa re n c y and

shou ld not be cons t rued as con f i rm a t i on of the v i ews exp ress ed in the repor t . T he v i ews exp res s ed in th is repor t

re f lec t the pe rsona l v i ews of the au tho r of the repor t and do not re f lec t the v i ews of Axis B ank or any o f i ts assoc i a te

and g roup com pan ies abou t the sub jec t c o m p a n y or com pan ies and its or the i r secu r i t i es .

Th is d o c u m e n t is pub l i shed by Axis B ank L im i t ed (“Axis B ank ” ) and is d i s t r i bu ted in S i ngapo re by the S ingapo re

b ranch of Axis B ank . Th is d o c u m e n t does not p rov i de ind iv idua l l y ta i lo red i nves tm en t adv i ce . T h e con ten t s in th is

d o c u m e n t have been p repa re d and are i n tended for gene ra l c i rcu la t ion. T he con ten t s in th is d o c u m e n t do not take

in to accoun t the spec i f i c i nves tm en t ob jec t i ves , f inanc ia l s i tuat ion, or pa r t i cu l a r needs of any pa r t i cu l a r pe rson . T he

secur i t ies and /o r i ns t rum en ts d i scussed in th is d o c u m e n t m a y not be su i tab le for al l i nves to rs .

DISCLAIMER

Axis B ank r e c o m m e n d s that you i ndependen t l y eva l ua te pa r t i cu l a r i nves tm en ts and s t ra teg ies and encou rag es you to

seek adv i ce f rom a f inanc ia l adv i se r rega rd i n g the su i tab i l i t y of such secur i t ies a n d / o r i ns t rum en ts , t ak i ng in to accoun t

you r spec i f i c i nves tm en t ob jec t i ves , f inanc ia l s i tuat ion and pa r t i cu l a r needs , be fo re m ak ing a c o m m i t m e n t to pu rchase

any secur i t ies and /o r i ns t rum en ts . Th is is because t he app rop r i a t en e ss of a pa r t i cu l a r secur i ty, i ns t rum en t , i nves tm en t

or s t ra tegy wi l l d e p e n d on you r i nd i v i dua l c i r cum s ta nc e s and i nves tm en t ob jec t i ves , f inanc ia l s i tuat ion and pa r t i cu l a r

needs . T he secu r i t i es , i nves tm en ts , i ns t rum en ts or s t ra teg ies d i scussed in th is d o c u m e n t m a y not be su i tab le for al l

i nves tors , and cer ta in inves tors m a y not be e l ig ib le to pu rchase or pa r t i c i pa te in s o m e or al l of t h e m .

This d o c u m e n t is not an o f fer to buy or sel l o r the so l i c i ta t ion of an o f fer to buy or sel l any secur i ty and /o r i ns t rum en t or

to pa r t i c i pa te in any pa r t i cu l a r t r ad i ng s t ra tegy. Axis B ank , i ts assoc i a tes , o f f i cers a n d / o r em p loye es m a y have

in teres ts in any p roduc t s re fe r red to in th is d o c u m e n t by ac t i ng in va r i ous ro les i nc l ud i ng as d is t r ibu tor , ho l de r of

p r i nc i pa l pos i t ions , adv i se r or lender . Axis B ank , i ts assoc i a tes , o f f i ce rs and /o r em p loye es m a y rece i ve fees ,

b rok e rage or com m iss i ons for ac t i ng in t hose capac i t i es . In add i t i on , Axis B ank , i ts assoc i a tes , o f f i cers and /o r

em p loye es m a y buy or sel l p roduc t s as p r i nc i pa l o r agen t a n d m a y ef fec t t ransac t i ons wh i ch are not cons i s ten t wi th

the i n fo rm a t i on set out in th is d o c u m e n t .

Axis B ank and its a f f i l i a tes do bus i ness that re la tes to com pan ies and /o r i ns t rum en ts cove red in th is docum en t ,

i nc l ud i ng m ark e t m ak ing and spec i a l i zed t rad ing, r i sk a rb i t r age and o the r p rop r i e ta ry t rad ing, f und m a n a g e m e n t ,

com m erc i a l bank i ng , ex tens i on of c red i t , i nves tm en t serv ices and i nves tm en t bank i ng . Axis B ank se l l s to and buys f rom

cus tom er s the secur i t ies and /o r i ns t rum en ts of com pan ies cove red i n th is d o c u m e n t as p r i nc i pa l o r agen t .

Axis B ank m a k e s eve ry e f for t to use re l iab le and com prehen s i v e i n fo rm a t i on , but m a k e s no rep resen ta t i on that it is

accu ra te or com p le te . Axis B ank has no ob l i ga t i on to i n fo rm you wh e n op in i ons or i n fo rm a t i on in th is d o c u m e n t

change . Fac ts and v i ews p resen ted in th is d o c u m e n t have not been rev i ewed by, and m a y not re f lec t i n fo rm a t i on

k n o wn to, p ro fess i ona l s in o the r Axis B ank bus i ness a reas , i nc l ud i ng i nves tm en t bank i ng pe rsonne l . Axis B ank

accep ts no l iab i l i t y wha tsoev e r for any loss or d a m a g e of any k i nd ar i s ing out of the use of the con ten t s in th is

docum en t . Axis B ank ’ s c o m m e n t s are an exp ress i on of op i n i on . W h i l e Axis B ank be l i eves the s ta tem en ts to be t rue,

they a lways d e p e n d on the re l iab i l i t y of Axis B ank ’ s o wn c red ib l e sou rces .

Disc la im er for D I F C b r a n c h :

Axis B ank , D IFC b ranch is du ly l i censed and regu la ted in the Duba i In te rna t i ona l F i nanc i a l Cen t re by the Duba i

F i nanc i a l S e rv i ces A u tho r i t y ( “DFSA”) . Th is d o c u m e n t is i n tended for use on ly by P ro fess i ona l C l ients (as de f i ned by

Rule 2 .3 .2 set out in the Conduc t of B us i ness Mo d u l e of the D F S A Ru lebook ) wh o sat i s fy the regu la to ry c r i te r ia set out

in the DFSA’s ru les , and shou ld not be re l ied upon , ac ted upon o r d i s t r i bu ted to any o the r pe rson (s ) o the r t han the

i n tended rec i p i en t .

DISCLAIMER

october december 2019 - axis bank

Documents