The Core Report episode #898 discusses how markets remain steady despite escalating tensions in West Asia, with a focus on mutual fund inflows slowing to 22,900 crore rupees in May. Additionally, the episode highlights India's corporate resilience, a new capex cycle driven by energy security and electronics manufacturing, and the power sector's struggle with peak demand of 270 GW.
Summarized by Podsumo
Equity mutual fund inflows fell 40% month-on-month to about 22,900 crore rupees in May, but SIP accounts remained steady at 96.4 million, indicating caution among investors rather than panic.
Corporate India is entering a new capital expenditure cycle, driven by energy security (renewables and transmission), import substitution (chemicals), and PCB/electronics manufacturing, as per insights from fund manager Prabhakar Kudwa.
India's power system faced a peak demand of 270 GW, with solar generation causing a day-time surplus and night-time deficit, highlighting the need for more storage and wind capacity, as explained by BCG's Vishal Mehta.
"If you read the management, if you hear the management, I think they are more bullish than the investors are... they see a lot of demand coming through."
— Prabhakar Kudwa
"We need a mix of technologies for storage... In my view, we should be aiming for much higher wind capacity because it is more aligned to the load profile."
— Vishal Mehta
"The data clearly shows that investors ditching their SIPs are in a minority and possibly belong to a newer generation of investors... patience and a strong stomach can matter more than the funds in hand."
— Govindaraj Ethiraj