3. 3
Source: Refinitiv Datastream, IMF, NSE EPR, March 2024
Global Growth and Outlook by the IMF
IMF projects global growth at 3.1% in 2024 and 3.2% in 2025
2.8
6.3
-2.8
-4
-2
0
2
4
6
8
1980 1985 1990 1995 2000 2005 2010 2015 2020 2025
GDP (Constant %YoY) Forecast Recession bands
4. 4
Source: Refinitiv DataStream, NSE EPR, March 2024
Inflation Across Major Economies
Europe continues to witness highest inflation among major economies
US UK Europe Japan
20
15
5
10
0
-5
2019 2020 2021 2022 2023
5. 1.0%
2.2%
2.4%
2.7%
3.2%
3.6%
3.9%
4.0%
6.7%
Japan
Germany
China
France
Canada
UK
US
Italy
India
5
Key Macro Numbers / Estimates
*Based on Henry Hub prices; **Except S&P 500, all countries/regions are represented by MSCI USD indices. Note: 1 – Data updated as of April 12. There is no assurance that any estimate, forecast or projection will be realised.
Perf %YTD US$ terms
S&P 500 +9%
Europe +4%
EM +2%
Germany +5%
UK +1%
France +4%
Spain +6%
Italy +11%
China -2%
Hong Kong -12%
Japan +7%
S. Korea -1%
India +7%
0.1%
0.3%
0.8%
0.7%
0.7%
2.2%
2.8%
4.7%
7.5%
Germany
UK
Canada
France
Japan
US
Global
China
India
All forecasts End-2024E
EUR/USD 1.10
USD/CNY 7.13
USD/JPY 142.00
USD/CHF 0.90
USD/INR 82.25
Gold oz $2,337.7
Silver oz $27.64
Copper mt $9,211.8
WTI bbl $81.59
Brent bbl $85.92
Gas* MMBtu $2.44
Wheat bu $5.70
Real GDP 2024E1
10 Year Yield 2024E 1
Forex and Commodities 1 Equity Performance 1
Source: Bloomberg, FactSet
6. 6
Global Equity Market Performance
-4.53
-2.97
-0.50
-0.14
1.20
1.90
2.04
2.84
3.41
3.95
4.03
4.42
5.62
7.78
8.26
8.78
9.11
10.03
10.16
10.39
19.08
20.03
Brazil Bovespa
Hang Seng
Singapore Straits Times
Jakarta Composite
SSE Composite
MSCI Emerging Markets
MSCI AC ASIA ex JAPAN
FTSE 100
KOSPI
Russia RTS
S&P/ASX 200
MSCI AC Asia Pacific
Dow Jones
MSCI AC World Index
FTSE Eurotop 100
CAC 40
Nasdaq
Reuters/Jefferies CRB Index
S&P 500
Xetra DAX
Taiwan Taiex
Nikkei
Quarter Ended March 2024
• Global equity markets ended on a positive note for the quarter.
• Developed Markets outperformed Emerging Markets.
• US equities were upbeat on optimism around an economic soft landing in select regions and on expectations of three rate cuts in 2024 by the US Federal Reserve.
• Growth stocks staged a strong rally as the Magnificent Seven (Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla) continued to contribute to returns on account of resilient earnings trends.
• European equities continued to gain momentum on signs of green shoots for economic recovery from the flash Purchasing Manager’s Index (“PMI”) data.
• The Japanese market was the top performer for the quarter.
• The end of the negative interest rate policy, economic normalization, resilient corporate earnings and Foreign Portfolio Investments aided investor sentiments.
• The Chinese market fell as concerns over macroeconomic conditions weighed on sentiments.
7. 7
Source: Refinitiv Datastream. NSE EPR. Note: Returns for equity indices are based on total return index values except for Shanghai SE Composite Index.
Global Asset Class Performance
(Data as of February 29th, 2024)
Ranked by % change each year
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024TD
SSE Comp
52.9
Bitcoin
34.2
Bitcoin
122.7
Bitcoin
1,394.5
Nifty 50
4.6
Bitcoin
94.1
Bitcoin
304.5
Bitcoin
59.4
WTI Crude
6.7
Bitcoin
153.5
Bitcoin
23.4
Nifty 500
39.3
STOXX 600
10.2
WTI Crude
45.0
MSCI EM $
37.8
Nasdaq 100
0.0
Nasdaq 100
39.5
Nasdaq 100
48.9
WTI Crude
55.8
Nifty 50
5.7
Nasdaq 100
55.1
WTI Crude
9.2
Nifty 50
32.9
Nasdaq 100
9.8
FTSE 100
19.1
Nifty 500
37.7
Gold
-1.7
WTI Crude
35.3
Gold
24.8
Nifty 500
31.6
FTSE 100
4.7
Nifty 500
26.9
Nasdaq 100
6.2
Nasdaq 100
19.4
SSE Comp
9.4
DJIA
16.5
Nasdaq 100
33.0
Nifty 500
-2.1
S&P 500
31.5
Russell 1000
21.0
S&P 500
28.7
Nifty 500
4.3
Russell 1000
26.5
S&P 500
5.6
S&P 500
13.7
S&P 500
1.4
Russell 1000
12.1
Nifty 50
30.3
DJIA
-3.5
Russell 1000
31.4
MSCI EM $
18.7
Nasdaq 100
27.5
Gold
-0.4
S&P 500
26.3
Russell 1000
5.5
Russell 1000
13.2
Russell 1000
0.9
S&P 500
12.0
DJIA
28.1
S&P 500
-4.4
MSCI World
28.4
S&P 500
18.4
Russell 1000
26.5
DJIA
-6.9
MSCI World
24.4
MSCI World
4.0
DJIA
10.0
Nifty 500
0.2
MSCI EM $
11.6
MSCI World
23.1
Russell 1000
-4.8
STOXX 600
27.6
Nifty 500
17.9
Nifty 50
25.6
STOXX 600
-10.1
Nifty 50
21.3
Nifty 500
3.2
STOXX 600
7.8
DJIA
0.2
Gold
9.0
S&P 500
21.8
MSCI World
-8.2
DJIA
25.3
MSCI World
16.5
STOXX 600
25.5
SSE Comp
-15.1
STOXX 600
16.5
DJIA
3.1
MSCI World
5.5
MSCI World
-0.3
MSCI World
8.2
Russell 1000
21.7
FTSE 100
-8.7
SSE Comp
22.3
Nifty 50
16.1
MSCI World
22.4
MSCI World
-17.7
DJIA
16.2
STOXX 600
2.2
FTSE 100
0.7
FTSE 100
-1.3
Nasdaq 100
7.3
Gold
12.6
STOXX 600
-10.2
MSCI EM $
18.9
SSE Comp
13.9
DJIA
21.0
S&P 500
-18.1
Gold
13.8
Nifty 50
1.0
Gold
-1.8
Nifty 50
-3.0
Nifty 500
5.1
WTI Crude
12.5
MSCI EM $
-14.2
Gold
18.7
DJIA
9.7
FTSE 100
18.4
Russell 1000
-19.1
MSCI EM $
10.3
MSCI EM $
-1.5
MSCI EM $
-1.8
Gold
-10.5
Nifty 50
4.4
FTSE 100
12.0
SSE Comp
-24.6
FTSE 100
17.3
STOXX 600
-1.5
SSE Comp
4.8
MSCI EM $
-19.7
FTSE 100
7.9
FTSE 100
-1.5
WTI Crude
-45.9
MSCI EM $
-14.6
STOXX 600
2.4
STOXX 600
11.2
WTI Crude
-25.3
Nifty 50
13.5
FTSE 100
-11.6
MSCI EM $
-2.2
Nasdaq 100
-32.4
SSE Comp
-3.7
Gold
-3.1
Bitcoin
-56.2
WTI Crude
-30.5
SSE Comp
-12.3
SSE Comp
6.6
Bitcoin
-74.2
Nifty 500
9.0
WTI Crude
-21.0
Gold
-4.0
Bitcoin
-64.1
WTI Crude
-10.4
SSE Comp
-3.7
WTI (West Texas Intermediate) Crude oil, S&P 500 (US), DJIA – Dow Jones Industrial Average (US), Stoxx 600 (Europe), FTSE 100 (UK), SSE Comp (Shanghai SE Composite Index).
9. 9
Note: all returns are in USD
Geographical Performance Trends
(Based on MSCI Country Level Indices)
Mar-24 Feb-24 Jan-24 Dec-23 Nov-23 Oct-23 Sep-23 Aug-23 Jul-23 Jun-23 May-23 Apr-23
India India India US Japan China Europe Europe Europe Europe Japan Europe
35.5% 36.0% 26.3% 25.0% 13.2% 18.4% 25% 19% 16% 19% 2.1% 9%
US US US World US Japan Japan US Japan US Europe Japan
28.3% 28.7% 19.2% 20.1% 12.4% 14.3% 23.3% 13.8% 12.6% 17.6% 2% 1.9%
Japan Japan Japan India Europe Europe US Japan US Japan US US
23.5% 24.3% 16.1% 19.6% 11% 13% 19.6% 12.7% 11.3% 15.5% 1.1% 0.2%
World World World Japan World Asia ex Japan World World World World India World
21.2% 21.0% 12.7% 17.8% 10.1% 10.9% 18.7% 11.9% 10.9% 14.4% 0.8% 0.2%
Europe Europe Europe Europe India Asia Asia Asia India India World Asia
11% 10% 7% 17% 4.6% 10.6% 13.3% 2.2% 6.6% 13.1% -1.0% -5.0%
Asia Asia Asia Asia Asia World India India Asia Asia Asia India
9.1% 9.5% -0.9% 8.8% 3.7% 8.6% 9.0% 0.4% 6.5% 3.3% -6.6% -7.8%
EM EM EM EM EM US EM EM EM EM Asia ex Japan China
5.3% 5.9% -5.4% 7.0% 1.5% 8.3% 8.8% -1.4% 5.3% -1.1% -10.3% -7.8%
Asia ex Japan Asia ex Japan Asia ex Japan Asia ex Japan Asia ex Japan EM Asia ex Japan Asia ex Japan Asia ex Japan Asia ex Japan EM Asia ex Japan
1.6% 2.5% -9.5% 3.6% -0.1% 7.9% 8.3% -2.9% 3.8% -3.4% -11.1% -8.2%
China China China China China India China China China China China EM
-19.0% -16.1% -30.6% -13.3% -6.4% 3.1% 2.9% -9.6% -0.5% -18.5% -16.6% -9.2%
MSCI INDIA Standard
MSCI USA Standard
MSCI CHINA Standard
MSCI JAPAN Standard
MSCI EUROPE Standard
MSCI EMERGING MARKETS Standard
MSCI AC ASIA PACIFIC Standard
MSCI AC ASIA ex JAPAN Standard
MSCI ACWI Standard
10. 10
Notes: Population and GDP data as of 2022. Figures exclude elections for European Parliament.
Sources: World Bank, Department of Household Registration of Taiwan, IMF, Macrobond. Analysis by Franklin Templeton Institute.
50+ Countries to hold elections in 2024
2024 Elections Total Global Share %
Number of Countries 50+ 26%
Population 3.5 billion 44%
Gross Domestic Product (GDP) US$45.6 trillion 46%
11. 11
Source: Franklin Industry Advisory Services analysis based on data in ‘Millennials or GenZ: Who’s doing the most job-hopping.’ Career Builder.
Average Years in a Job by Generation
2.25
2.75
5.17
8.25
0
1
2
3
4
5
6
7
8
9
Generation Z Millennials Generation X Baby Boomers
As of September 2023
Note- Baby Boomers (born between 1946 to 1964), Generation X (born between Mid 1960s and Mid 1980s), Millennials (born between mid 1980s and mid 1990s) and Generation Z (born between
mid 1990s and 2012).
The average number of years spent in a job has been declining over the generations. Baby Boomers spent the highest average number of years in a
job (8.25 years) while Generation Z spends an average 2.25 years in a job.
18. 18
Currency, Forex Reserves
USD INR Forex Reserves
74.50
75.50
76.50
77.50
78.50
79.50
80.50
81.50
82.50
83.50
84.50
Mar-22
May-22
Jul-22
Sep-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
0
100
200
300
400
500
600
700
Mar-03
Mar-04
Mar-05
Mar-06
Mar-07
Mar-08
Mar-09
Mar-10
Mar-11
Mar-12
Mar-13
Mar-14
Mar-15
Mar-16
Mar-17
Mar-18
Mar-19
Mar-20
Mar-21
Mar-22
Mar-23
Mar-24
FX Reserves (US$, Bn)
• From the closing level of previous month, the rupee depreciated by 0.6% to close at USD/INR 83.40 and lost 0.2%for the quarter ended March 2024.
• In the month of March 2024, Dollar Index (DXY) gained 0.3% and 3.1% for the quarter ended March 2024.
• Forex exchange reserves rose to an all-time high of US$ 645.6 billion as of March 29, 2024.
21. 21
Source: Bloomberg, RBI, MOSPI, Morgan Stanley
Domestic Macros Heatmap
GDP data for Q3FY24, Fiscal Deficit data is as of FY23, CPI data as on 29-February-2024, Crude oil, currency, forex Reserves and GST collections as on 31-March-2024.
Fiscal Year End FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Latest*
GDP Growth (%) 6.6 7.2 7.9 7.9 7.3 6.1 4.2 -7.4 4.1 4.4 8.4
CPI Inflation (%) 9.5 5.9 4.9 3.8 3.6 3.4 5.8 5.5 7.0 5.7 5.1
Current Account (% of GDP) -1.7 -1.3 -1.1 -0.6 -1.9 -2.4 0.1 -0.2 -1.5 -2.2 -1.2
Fiscal Deficit (% of GDP) 4.5 4.1 3.9 3.5 3.5 3.4 4.6 9.3 6.7 6.4 6.4
Crude Oil (USD/Barrel) 107 53 39 60 58 65 23 59 111 80 87
Currency (USD/INR) 60 63 66 65 65 70 75 73 76 82 83
Forex Reserves (USD bn) 304 342 356 370 424 413 490 579 606 579 646
GST Collections (INR billion) 1222 1239 1421 1601 1785
22. 22
Source (basic data): UN Population statistics 2022.
A Worker Boom
India’s Working Age Population (WAP) to total population ratio will be
the highest for any large economy
72.9
Highest share of WAP in 2030: India
68.9
45
50
55
60
65
70
75
1950
1960
1970
1980
1990
2000
2010
2020
2030
2040
2050
2060
2070
2080
2090
2100
WA Pop - China:% WA Pop - India: %
25. 25
Domestic Market Performance
-5.62
-1.59
-1.44
-1.02
1.09
1.15
1.95
2.74
4.03
4.25
4.31
4.47
4.55
4.57
4.78
6.74
9.52
11.11
14.89
15.18
16.37
17.46
20.08
S&P BSE Fast Moving Consumer Goods
S&P BSE Finance
S&P BSE TECK
S&P BSE Sensex
Nifty Midcap 150
S&P BSE 500
S&P BSE Consumer Durables
S&P BSE 200
S&P BSE Capital Goods
S&P BSE REALTY
S&P BSE Auto
S&P BSE OIL & GAS
Quarter Ended March 2024
• Domestic markets were positive for the quarter.
• The Nifty 50 index gained 2.7% for the March quarter and scaled new highs during the quarter.
• It was buoyed by broad-based buying across sectors, healthy earnings growth, positive global cues, and a gradual decrease in domestic inflation.
• However, further gains were capped as volatility emerged in the midcap and small cap markets, towards the end of the quarter.
• Regulatory norms for midcap and small cap segments around stress test and some restrictive actions against certain NBFCs prompted correction in these segments.
• On the sectoral front, Oil & Gas, PSU, Auto, and Power were among the top gainers for the quarter.
• The Nifty Midcap 150 Index added 4.2% and the Nifty Smallcap 250 gained 2.2% for the quarter.
26. 26
Source: CMIE Prowess, AMFI, SEBI, NSE EPR. December 2023.
Individual Investors have a higher exposure to
Small and Midcap companies
Deciles FPIs DMFs Individuals Total Mkt Cap
1 89.5 80.0 65.1 78.9
2 6.9 13.3 14.1 11.2
3 2.3 4.3 8.6 4.8
4 0.9 1.8 4.9 2.4
5 0.3 0.5 3.1 1.3
6 0.1 0.1 2.0 0.7
7 0.0 0.0 1.1 0.4
8 0.0 0.0 0.6 0.2
9 0.0 0.0 0.3 0.1
10 0.0 0.0 0.1 0.0
• There are about 2200 companies listed on NSE. Dividing this universe into deciles of 10% each (220 companies in each decile) based on market cap and plotting the investor wise exposure
to each decile, we can see the investing trend of each class of investors.
• Decile 1 represents top 220 companies by market cap. They comprise nearly 80% share of total listed market cap.
• Foreign Portfolio Investors (FPIs) have about 90% exposure to the top decile companies. Domestic Mutual Funds (DMFs) have 80% exposure to this segment.
• Individual investors allocation to the top decile companies is 65% and about 35% to companies below the top decile (beyond the top 220 companies by market cap).
27. 27
Share of Institutional Investors in
Domestic Equities %
Alternative
Investment
Funds
1.29
Banks
2.43
FDI Investments
15.07
Foreign Depository
3.05
FPIs
37.17
Insurance
Companies
12.93
Pension
Funds
1.29
MFs
20.11
Others
6.64
Portfolio
Managers
1.64
Source: NSDL, compiled by ETIG, March 2024. FDI – Foreign Direct Investment, FPIs – Foreign Portfolio Investors, MFs – Mutual Funds
29. 29
Market Capitalization milestones over the year
It took just nine months to add the last ₹100 trillion
50
100
200
300
400
Sep-2007 Dec-2014 Feb-2021 Jul-2023 Apr-2024
Source: BSE, Mint, 8 April 2024
(in ₹ trillion)
30. 30
Data as of 7 April 2024
Source: BSE, NSDL, Bloomberg
Indian Stocks Rise Up in Global Pecking Order
Top Markets (market cap in USD trillion)
3.02
3.09
3.4
4.56
4.88
6.55
9.18
54.75
Canada
UK
France
India
Hong Kong
Japan
China
US
32. 32
Domestic Interest Rate Trend
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Mar-16
Jun-16
Sep-16
Dec-16
Mar-17
Jun-17
Sep-17
Dec-17
Mar-18
Jun-18
Sep-18
Dec-18
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Jun-20
Sep-20
Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
Dec-23
Mar-24
10 year benchmark yield Reverse Repo/ SDF Repo Rate Cash Reserve Ratio Marginal Standing Facility
• RBI kept policy rates unchanged at 6.50% and decided to remain focused on withdrawal of accommodation while ensuring that inflation progressively aligns with the target while supporting growth.
• The decision to hold rates and the monetary policy stance was backed by 5 out of 6 members.
• In both the instances Prof. Jayanth R. Varma voted to reduce the policy repo rate by 25bps and the policy stance to neutral.
33. 33
Yield Curve
6.90
6.95
7.00
7.05
7.10
7.15
7.20
7.25
7.30
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 19 30
YTM
28-Mar-24 29-Feb-24 31-Jan-24
• Inclusion of Indian bonds in the global bond indices, prudent fiscal policies in an election year and the global yield movements led to softening of yields.
• The benchmark 10-year sovereign yield in India fell by another 13bps during the quarter and by 3bps during the month ending March 2024.
• Reflecting improvement in liquidity conditions weighted average call rate (WACR) leaned towards the repo rate from marginal standing facility rates earlier.
36. 36
Sources: CARE Ratings, CMIE, RBI, Prime Database. CD = Certificates of Deposit, CP = Commercial Paper. Corporate bonds data is for private placements.
Debt Market Issuances
CP issuances have exceeded CD and Corporate Bond
issuances in most months
0.2
0.5
0.8
0.4
0.5
0.7
0.6
0.4
1.5
0.6
1.1
1.1
1.2
1.5
0.9
1.2 1.2
0.8
1
1.1
0.9
1.4
0.7
1
1.1
0.5 0.5
0.7
0.4
1
1.1
0.7
1
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24
Rs
Lakh
Crore
CD CP Corporate Bonds
37. 37
Risk Factors
The information contained in this presentation is not a complete representation of every material fact and is for informational purposes only.
Investments in mutual funds carry higher risks. We have relied on third party data or information which, we believe to be correct but, we do not
offer any assurance as to the accuracy or the correctness of the same and would not accept any liability for any loss or damage arising directly
or indirectly from action taken, or not taken, in reliance on material or information contained herein. The recipient is advised to consult its
financial advisor/ tax consultant prior to arriving at any investment decision. Statements/ opinions/recommendations in this presentation which
contain words or phrases such as “will”, “expect”, “could”, “believe” and similar expressions or variations of such expressions are “forward –
looking statements”. Actual results may differ materially from those suggested by the forward-looking statements due to risk or uncertainties
associated with our expectations with respect to, but not limited to, exposure to market risk, general economic and political conditions in India
and other countries globally, which have an impact on the service and / or investments. This communication is meant for use by the recipient
and not for circulation/reproduction without prior approval. The views expressed are based on current market conditions and information
available to them and do not constitute investment advice in any manner whatsoever to any party. These views alone are not sufficient and
should not be used for the development or implementation of an investment strategy. All opinions and estimates included here constitute our
view as of this date and are subject to change without notice. Neither Franklin Templeton Group nor any person connected with it, accepts any
liability arising from the use of this information. The recipient of this presentation should rely on their investigations and take their own
professional advice.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.