India’s share in the world market capitalisation hit an all-time high of 3.4 per cent in August 2022, according to financial services firm Motilal Oswal Financial Services. The figure stood higher than its long-term average of 2.5 per cent. The brokerage further said that the country is among the top five contributors to the world market valuation.
Data further highlighted the US market contributes 43.5 per cent to the world market capitalisation. It was followed by China (10.6 per cent), Japan (5.4 per cent) and Hong Kong (5.1 per cent). In the last 12 months, the global m-cap witnessed a fall of 15.9 per cent, while India’s m-cap has risen by 3.1 per cent.
“Barring Indonesia and India, all key global markets saw a decline in m-cap over the last 12 months,” Motilal Oswal Financial Services said.
The benchmark equity index BSE Sensex and NSE Nifty gained over 3 per cent in August following heavy buying by foreign institutional investors (FIIs). Global investors clocked the highest inflows since January 21 at $6.8 billion in August 22.
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Commenting on the valuation and further movement of the domestic equity market, Motilal Oswal Financial Services said, “With this rally, the Nifty now trades at 21 times FY23E EPS, comfortably above its long term average, and offers limited near-term upside in our view. The upside from here on will be a function of stability in global and local macros, and continued earnings delivery against expectations.”
The brokerage is overweight on BFSI, IT, consumer, telecom and auto sectors. On the other hand, it has an underweight or neutral view on energy, metals and healthcare themes.
For stock-specific investors, the brokerage in its monthly report Bulls & Bears suggested Reliance Industries, Infosys, HUL, ICICI Bank, SBI, Bharti Airtel, ITC, Maruti Suzuki, Titan Company, Ultratech Cement, Hindalco, and Apollo Hospitals in the largecap space. On the other hand, it is positive on Macrotech Developers, Ashok Leyland, Jubilant Foodworks, Clean Science, M & M Financial, Angel One, VRL Logistics, and Lemon Tree Hotel in the midcap and smallcap space.
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