India emerged as leading market over last 12 months: Motilal Oswal report

The research report by Motilal Oswal says all major sectors in India ended higher in November

December 7, 2022

Barring India, Indonesia, all key global markets saw a decline in market cap over the last 12 months

India has emerged as a standout market over the last 12 months, a research report titled “Bulls and Bears” by Motilal Oswal Financial Services Limited has said.

As the global market cap declined by 16.8 percent ($19.9 trillion) over the last 12 months, India’s market cap rose 3.8 percent, the report noted. Barring Indonesia and India, all key global markets saw a decline in market cap over the last 12 months, it added.

The research report further said that all major sectors in India ended higher in November.

Public sector banks at 16 percent, metals (11 percent), technology (6 percent), and financials (4 percent) were the top gainers. Utilities, autos, and healthcare were the only laggards, the report noted.

Commenting on the markets, the Motilal Oswal report said that “Nifty has maintained its winning streak as it touched a fresh high of 18,816, ending 4.1 percent higher month on month at 18,758 in November.”

“The Nifty is up 8 percent year to date on the back of strong FII inflows, a global recovery, and a moderation in some commodity prices,” it said.

“FIIs recorded inflows for the second consecutive month at $4.7 billion, domestic institutional investors (DIIs) turned sellers at $0.8 billion in November. Midcaps and small caps underperformed large caps by 2.2 percent and 1.1 percent respectively in November. Over the last 12 months, large-caps and midcaps have risen by 10 percent and 8 percent respectively, while small caps have declined by 6 percent,” it added.

Commenting on the telecom sector, the report said that its revenue is expected to grow quarter on quarter led by 4G ads and data usage.

Subscriber data for September released by TRAI indicated a marginal decline in the active subscriber base as Bharti Airtel and Reliance Jio Infocomm added 2.5 million and 0.9 million subscribers respectively, while Vodafone Idea lost 3 million subscribers on a month-on-month basis.

Bharti Airtel raised its minimum recharge plan by 57 percent for 2G users in Haryana and Odisha.

Sector revenue is expected to grow by 3 to 4 percent quarter on quarter in the third quarter of the current fiscal on the back of decent 4G additions and rising data usage in the seasonally stronger third quarter of the fiscal, the report said.

[With Inputs from IANS]

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