Street signs: Debt funds under pressure, diagnostic firms go weak and more

Buying shares of companies that operate in the cold storage space is emerging as a hot theme on Dalal Street

Debt fund returns under pressure

With the Reserve Bank of India (RBI) maintaining a status quo on key policy rates on Friday, fund managers believe investors should lower their return expectations from debt funds as the rate-cutting cycle is nearing its end and potential for capital gains are limited. Those with a higher risk appetite can go up the duration curve. "Given the wide gap between short- and long-maturity bond yields and a stable interest rate outlook, longer maturity bonds look attractive from an accrual standpoint. However, investors in longer maturity bonds/funds should remain cautious of fiscal and inflation risks over