In Oct'21, key global markets such as the US (+7%), Indonesia (+5%), the UK (+2%), Russia (+1%), Taiwan (+0.3%), and India (+0.3%) and indices such as MSCI EM (+1%) closed higher in local currency terms, according to a report by Motilal Oswal.
"On the other hand, Brazil (-7%), Korea (-3%), Japan (-2%), and China (-1%) ended lower. In the last 12 months, MSCI India (+50%) has outperformed MSCI EM (+15%). In the last 10 years as well, MSCI India has outperformed MSCI EM by 167%. In P/E terms, MSCI India is trading at a 94% premium to MSCI EM, above its historical average of 58%," the report says.
In India PSU Banks among top performers
In India, among the sectors, PSU Banks (+14%), Automobiles (+7%), Media (+5%), Utilities (+4%), and Private Banks (+4%) were the top performers in Oct'21. Consumer (-5%), Healthcare (-4%), Real Estate (-3%), Telecom (-3%), and Technology (-2%) were the key laggards. Tata Motors (+45%), ICICI Bank (+14%), SBI (+11%), Titan (+10%), and M&M (+10%) were the top performers. On the other hand, HUVR (-11%), Coal India (-11%), Eicher Motors (-11%), HCL Tech (-11%), and TCS (-10%) led decliners. In this edition, we dive deep into the valuation metrics of the Capital Goods sector.