Debt Mutual Fund Strategy

Classification - Restricted Consensus views of Fund Managers on Key Sectors Banking & Financial Services Positive on large private sector banks, insurance companies and select large NBFCs/HFCs. Expect strong credit growth to continue on back of economic recovery Steady margins (NIM), corporate asset quality holding up better, Banks are well capitalized, well placed on technology front. Issues around Fund raise and some smaller banks with weaker deposit franchise could get impacted negatively Reasonable valuations, but rising rates could play spoilsport Information Technology Cautious - Growth and margins both might moderate in few quarters as global growth slows meaningfully. Consumer Sector Auto Cautiously optimistic - Volume growth has shown muted performance, while gains have come due to better pricing gains. Gross margin headwinds have eased. Organized players to gain market share as unorganized get hit by elevated inflation. Valuations is some pockets are lower relative to their own historical performance. Companies having higher urban dependence is expected to perform better. Rural demand continues to remain slow but recent correction in commodities to aid gross margins expansion. FMCG better than Durables. Positive - Positive on select Passenger Vehicle OEMs which have a larger part of the demand coming from urban consumers. Demand for vehicles is currently strong and is expected to retain momentum, due to high backlogs. Improvement in supply chain situation, volume improvement in PV segment suggests strong growth. Decline in commodity prices likely to help margins. 18 Confidential/Restricted HDFC BANK RESEARCH HDFC BANK We understand your world Classification - Restricted

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