Broking firm, Motilal Oswal has come-up with its India Strategy- The Eagle Eye Report. According to the broking firm, the Nifty has outperformed the Midcap and Smallcap index for first time in CY21.
Solid rebound in the markets
According to the Motilal Oswal report from the lows in March of this year, global equities markets have increased by 75% in market capitalization to USD 119 trillion.
"While closely tracking the reduction in real yields, Bank Nifty has lagged Nifty. As top 100 firms gain from cost efficiency and pricing power to enhance EBITDA margins and profits, big corporations are getting bigger," the brokerage has said.
The India Strategy- The Eagle Eye Report, has also noted that the first quarter of FY22 earnings season has broadly met expectations, with cyclicals leading the way. GDP- 1QFY22 Real/Nominal GDP increased by 20.1 percent /31.7 percent YoY, helped by a soft 1QFY21 base.
Private consumption contributes to growth
According to the Motilal Oswal report, the investment and private consumption were sharp contributors to economic growth. "Macro Trends- Government gross receipts as % of BE at multi-year high while fiscal deficit is at multi-year lows. In the months of July and August, the south west monsoon was in short supply. COVID-19 active cases fell to 387k in August of this year, with vaccination rates increasing to 6.1 million per day in August vs. 4.3 million in July," the brokerage has said.
Top stocks to buy from the midcap space
Motilal Oswal has listed 7 midcap stocks to buy in its India Strategy- The Eagle Eye Report.
|Current market price|
|Cholamandalam Investment||Rs 576.35|
|L&T Technology Services||Rs 4316.40|
|Max Financial||Rs 1,100|
|Deepak Nitrite||Rs 2362|
|JK Cements||Rs 3560|
|Endurance Technologies||Rs 1587|
|Clean Science||Rs 1612|
|Aditya Birla Fashion||Rs 214.80|
|Orient Electric||Rs 330.45|
|Solara Active Pharma||Rs 1,702|
Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage houses are not liable for any losses caused as a result of decisions based on the article. The above article is for informational purposes only and has been taken from the report of Motilal Oswal Financial Services. Be careful while investing as the Sensex has now crossed 58,000 points. Remember, the Nifty moved from 16,000 points to 17,000 points within 19 trading days, one of the fastest 1000 point milestone in its journey. Investors can invest small amounts and avoid putting lumpsum.