The Nifty recovered in April with a gain of 4.1% MoM after having a rough four months, according to a report from Motilal Oswal Financial Services.
The index, which was notably quite volatile, fluctuated by 776 points before finishing 705 points higher. According to the analysis, the Nifty50 has underperformed the developing markets and global indexes in CY23YTD due to a variety of global macro factors, including currency, interest rates, and inflation.
According to the research, India's stock markets are flat in local currency whereas the majority of global equity markets are up 5 to 20% in CY23YTD.
The Nifty50 underperformed the Nifty Midcap 100 (+5.9% MoM) and the Nifty Smallcap 100 (+7.5%) throughout the month.
For the second consecutive month, FIIs had inflows.
After registering inflows of $1.8 billion in March 23, FIIs were net purchasers for a second consecutive month at $1.9 billion in April 23; YTD outflows were $0.6 billion. DII inflows decreased on April 23 to $0.3 billion, totaling $10.4 billion so far this year.
All significant industries saw gains in April: Real estate (+15%), PSU banks (+12%), automobiles (+8%), capital goods (+7%), and telecom (+7%) were the top gainers, while technology (-3%) was the lone laggard, according to the study.
In April of 23 India was one of the best-performing markets.
Russia (+9%), India (+4%), the United Kingdom (+3%), Japan (+3%), Brazil (+3%), Indonesia (+2%), China (+2%), the US (+1%), and Korea (+1%) were among the major international markets to close higher in April 23, while Taiwan (-2%) and MSCI EM (-1%) did so in local currency terms.
The MSCI India index has outperformed the MSCI EM index over the last 12 months (-1% vs. -9%). The MSCI India index has outpaced the MSCI EM index by 167% over the last ten years, according to the research.
Corporate profits have so far been consistent with the success of the major players driving the aggregate, including Reliance Industries, Axis Bank, ICICI Bank, HDFC Bank, and TCS.
With 79% of the universe either reaching or surpassing profit projections, the profits distribution has been respectable.
BFSI, Technology, and O&G are leading the rise, although Metals, Healthcare, and Telecom reported a YoY profits fall for the quarter, according to the research.