Portfolio management services have surged with a 58% year-on-year growth, reaching a record ₹2.8 lakh crore in February 2024, surpassing the institutional equities AUM increase.
PMS now accounts for 1.7% of the total institutional AUM, with the top schemes from ENAM AMC, ASK Investment Managers, Quantum Advisors, Unifi Capital, Abakkus, and ICICI Pru dominating nearly 50% of the market.
Last month, the Swiss National Bank surprised markets by reducing rates, prompting speculation about a potential global pivot among central banks. As India’s Monetary Policy Committee prepares for its review meeting, investors await clarity on the country’s rate easing cycle.
However, India’s robust economic growth, led by sustained expansionary indicators and substantial capital expenditure, suggests a delay in rate cuts. With expectations for increased corporate capital expenditure, reminiscent of previous growth cycles, analysts anticipate a potential delay in rate easing until the third quarter of the year.
This delay is attributed to the need for higher neutral rates amidst sustained economic growth and improving productivity, paralleling trends observed in previous capex-led growth cycles.
RBI’s recent directive on exchange-traded currency derivatives, effective from April 5th, requires proprietary traders and retail investors to demonstrate contracted or prospective currency exposure to participate in the segment, causing concern among market participants.
The regulation, which mandates demonstrating underlying exposure, could potentially drain liquidity from the market, impacting speculation on dollar-rupee futures contracts. Broker associations seek clarifications from regulators, emphasizing the need to balance regulatory vigilance with market confidence.
Late-stage funding for Indian startups is increasing despite an overall decline in investments this year, falling short of last year’s funding levels. March witnessed seven late-stage funding deals compared to two a year ago, with startups like Pocket FM, Perfios Software, and Sharechat securing substantial funding.
However, the total funding for late-stage startups was lower at $239 million compared to $505 million last March. Overall, funding for new-age tech companies decreased to $811 million in March, down 29% from last year, indicating a cautious approach from investors.
Despite recent improvements in funding trends, a significant increase is expected only after the 2024 general elections for greater clarity on government formation.