Nifty ended 3% lower month-on-month (MoM) in May 2022 as the stock posted a fall for the second consecutive month. However, Nifty remains resilient despite several headwinds in CY22 year-on-year (YTD) as strong DII inflows continue.
“We find greater value in large-caps than mid-caps by looking at the relative valuation equation. In a note, domestic brokerage and research firm Motilal Oswal said, “We reiterate that in a volatile and challenging macro-adversity environment, earnings delivery for the markets is critical.
share it top stock picks In the midcap and smallcap space, the brokerage said its top ideas include Cholamandalam Investment and Finance Company, Macrotech Developers, Ashok Leyland, L&T Technology, Jubilant Foodworks, APL Apollo Tubes, GR Infraproject, Angel One, Sapphire Foods, VRL Logistics and Lemon . Tree Hotel.
Foreign institutional investors (FIIs) registered an outflow of $4.9 billion for the eighth consecutive month. However, the outflow was more than offset by the material DII inflow. In May 2022, domestic institutional investors (DIIs) invested $6.1 billion, the highest since March 2020.
In the last 12 months, MSCI India has outperformed MSCI EM. In terms of P/E, MSCI India is trading at an 87 per cent premium to MSCI EM, which is above its historical average of 61 per cent.
Meanwhile, top recommendations of brokerage houses under largecap include Reliance Industries (RIL), Infosys, ICICI Bank, State Bank of India (SBI), Bharti Airtel, Titan Company, UltraTech Cement, Mahindra & Mahindra (M&M), Hindalco, Godrej Consumer Are included. , and Apollo Hospitals.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.