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Research Macroscope Turning the tide – April 2023

Turning the tide – April 2023

Written by - Fisdom Research

April 13, 2023 1 minute

Key Highlights

Aligning with policy pause: inflation print supports RBI’s stance at 6.5%. It has raised the threshold for future rate hikes in FY24.

Core inflation dips: Mar’23 brings relief after pandemic persistence

Key takeaways


  • Both inflation and core inflation have fallen, attributed in part to the high base effect from last year.
  • RBI (Reserve Bank of India) may likely continue with its policy pause after the recent decline in inflation.
  • The potential risks to the current outlook include:
    • Geopolitical tensions
    • Global financial market volatility
    • Rise in oil prices


  • Fixed Income
    • Three to Five Years looking attractive from a duration standpoint. Conservative allocation towards longer end.
    • Stick to Sov/AAA-rated papers. Minimal and cautious allocation to AA-rated instruments
    • Accrual (Active + Passive) + Duration (Active) as strategy
  • Equity
    • Large-cap portfolio orientation; build midcap exposure selectively. Smallcap exposure if required by target portfolio.
    • Sectoral Winners: Auto & Ancillaries, Banks, Capital Goods, Industrials, IT, FMCG

Continue allocation to gold in line with target asset allocation.

Fixed Income Play

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