RBI stance on not lowering interest rate completely spooked the market. Market was expecting both CRR and interest rate cut. Depreciation of rupee and lack of government initiatives to control deficit has made RBI’s stand on interest rate more hawkish. In the second half of the month market started clawing back with sensex moving up by 7.50% for the month. This was one of the best months for the market. As liquidity started flowing back to Indian market we saw short covering in the market.

All the three strategies underperformed the market for the month. But if we look at longer range return like 3 months we are significantly beating the market. We will continue with our focus on high quality businesses with sustainable business model.