India’s market cap outperforms global markets: Motilal Oswal Financial Service

Over last 12 months, midcaps/small caps have outperformed large caps and have risen 35%/ 28% vs. a 22% rise for Nifty

July 4, 2023

The Nifty ended higher for the fourth consecutive month in June’23

Global market cap rose 7.3 percent ($7.2 Tn) over the last 12 months, while India’s market cap jumped 17.2 percent barring Russia and China, all key global markets witnessed a rise in market cap over the last 12 months, Motilal Oswal Financial Services said in a report.

The Nifty ended higher for the fourth consecutive month in June’23. The index oscillated 737 points before closing 655 points (or 3.5 percent) higher MoM at 19,189 – a new peak. The Nifty is up 6 percent in CY23YTD. Midcaps/ small caps outperformed large caps by 3.1 percent/ 2.4 percent in June’23. Similarly, over the last 12 months, midcaps/ small caps have outperformed large caps and have risen 35 percent/ 28 percent vs. a 22 percent rise for the Nifty.

FII inflows are the highest since September’22. FIIs remained net buyers for the fourth straight month at $6.7 bn in June’23; YTD inflows stood at $11.2 bn. Conversely, DIIs – after reporting outflows in May’23 – saw muted inflows in June’23 at $0.5 bn; YTD inflows stood at $10.5 bn, the report said.

Among the key global markets, Brazil (+9 percent), Japan (+7 percent), the US (+6 percent), India (+4 percent), MSCI EM (+3 percent), Taiwan (+2 percent), and the UK (+1 percent) ended higher in June’23, while Korea (-0.5 percent), and China (-0.1 percent) ended lower in local currency terms.

Over the last 12 months, the MSCI India index (+17 percent) has outperformed the MSCI EM index (-1 percent). Over the last 10 years, the former has outperformed the MSCI EM index by 178 percent, the report said.

After a roller-coaster ride of 18 months, Nifty-50 finally surpassed its all-time high and touched the 19,000 mark in June’23. The feat was not at all easy though! Nifty’s journey from 18,000 to 19,000 took 425 trading days (from October’ to 21-June’23) vs. only 31 days when it covered the journey from 17,000 to 18,000. With healthy macros, range-bound oil prices, a robust fiscal balance sheet, and moderating inflation, the outlook for the market looks optimistic, the report added.

[With Inputs from IANS]

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