While most global equity markets are rising 5-20% in 2023, India is flat

By siliconindia  |  Wednesday, 03 May 2023, 11:23:33 AM IST

While most global equity markets are rising 5-20% in 2023, India is flat
The Nifty, after a weak run in the last four months, bounced back in April with a 4.1 percent MoM gain, Motilal Oswal Financial Services said in a report. Notably, the index was extremely volatile and swung around 776 points before closing 705 points higher. Nifty50 has been underperforming the emerging markets and the world indices in CY23YTD amid varied global macro headwinds viz., inflation, interest rates, and currency, the report said.
While most of the global equity markets are rising 5-20 percent in CY23YTD, India is flat in local currency, the report said. The Nifty Midcap 100 (+5.9 percent MoM) and Nifty Smallcap 100 (+7.5 percent) outperformed the Nifty50 during the month. FIIs recorded inflows for the second consecutive month.
FIIs remained net buyers for the second straight month at $1.9 billion in Apr'23, after recording inflows of $1.8 billion in Mar'23; YTD outflows stood at $0.6 billion. DII inflows ebbed in Apr'23 at $0.3 billion and stood at $10.4 billion YTD.
All major sectors end higher in Apr'23: Real Estate (+15 percent), PSU Banks (+12 percent), Automobiles (+8 percent), Capital Goods (+7 percent), and Telecom (+7 percent) were the top gainers, while Technology (-3 percent) was the only laggard, the report said.
India was among the top-performing markets in Apr'23. Among the key global markets, Russia (+9 percent), India (+4 percent), the UK (+3 percent), Japan (+3 percent), Brazil (+3 percent), Indonesia (+2 percent), China (+2 percent), the US (+1 percent), and Korea (+1 percent) closed higher in Apr'23, while Taiwan (-2 percent), and MSCI EM (-1 percent) ended lower in local currency terms.
Over the last 12 months, the MSCI India index (-1 percent) has outperformed the MSCI EM index (-9 percent). Over the last 10 years, the MSCI India index has outperformed the MSCI EM index by 167 percent, the report said.
Corporate earnings so far have been in line with the performance of heavyweights, such as Reliance Industries, Axis Bank, ICICI Bank, HDFC Bank, and TCS, driving the aggregate.
The spread of earnings has been decent with 79 percent of the universe either meeting or exceeding profit expectations.
However, the growth is being led by BFSI, Technology, and O&G, while Metals, Healthcare, and Telecom recorded a YoY earnings decline for the quarter, the report said.
Source: IANS

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