Equities: The market continues to see a sturdy efficiency from the Small and Mid-cap shares as these indices as soon as once more delivered a wholesome efficiency throughout June. Axis Securities mentioned that volatility continues to scale back indicating the continuance of a robust bull market and mid, small, and enormous cap worth proceed to stay key allocation themes.

As earnings season is ready to begin, the influence of latest lockdown measures will likely be vital and administration commentary post-Q1FY22 outcomes will likely be a key monitorable.

In its Covid 2.0 be aware, Axis had minimize its Nifty earnings by 6% and subsequently its Nifty goal by 6%. Nonetheless, submit Q4FY21 outcomes and vital upgrades throughout the sectors, the brokerage’s estimates have additionally seen upgrades by 8%. Subsequently, it additionally upgraded its December 2021 Nifty goal to 17,400. ‘’General, we stay constructive available on the market and consider the dips needs to be utilized to construct positions within the really useful themes,’’ it mentioned.

Mounted Revenue: Bond yields had been largely steady at round 6% throughout the month on account of the RBI’s efforts on open market operations (OMOs), operation twist, and the federal government’s safety acquisition program. Liquidity remained a key focus space within the June MPC.

Axis believes that lending help to small companies and MSMEs will assist scale back the stress within the system. It additionally believes that the yield curve will stay steep in mild of ample liquidity within the system in direction of the decrease finish of the yield curve whereas the longer finish of the yield curve stays cautious on account of supply-side challenges in inflation. ‘’We proceed to favor a high quality method in bonds with some non-AAA publicity based mostly on particular person danger urge for food,’’ the be aware mentioned.

Gold: Gold costs corrected by 4-7% in INR/USD phrases in June on account of a extra hawkish stance by the US Fed. Extra hawkish Fed led the greenback to strengthen additional for the second half of the month, creating downward strain on the gold costs.

‘’With the additional strengthening of the greenback, gold costs proceed to face challenges. Rising inflation expectation and improved financial outlook with a pick-up in vaccination for the second half of 2021 and consider on the central banks tapering are the headwinds within the close to time period which is able to restrict the gold costs,’’ the brokerage mentioned. Nonetheless, it sees gold to proceed to be a most popular asset class for hedging danger towards different asset courses. It continues its ‘Impartial’ stance on Gold and recommends a ‘buy-on-dips’ technique.