In today’s deals, India’s fear gauge, the India vix, has declined over 3 percent to its day’s low of 17.91 on Wednesday, May 28. Meaning 0.28 Percent in intra-day deals.
Against this backdrop, the firm believes it is now for investors to shift their focus from macro events to corporate earnings, as early indicators point to impormance by india
Earnings take center stage as markets stabilise
According to mopw, early Q4 fy25 results Signal a healthy corporate earnings traffic, and the nifty 50 is expected to deliver a 14 percent Cagr in EPS Over the Next Two years. With Large-Cap Valuations Having Moved from “Attractive” to “Fair” Levels Folling The Recent Rally, The Firm Believes Return Expectations must be Moderated Going Forward.
While Mid and Small Caps Are Still Trading at a Premium Relative to their long-term Historical Averages, MOPW ACKNOWLEDGED That Selective Oportunities are begining to emerge in these segment
India’s Macro Fundamentals Remain Supportive
The wealth manager stated that India is relatively better positioned compared to global peers, citing macroeconomic indicators such as aes aes a declining 10-yar g-sec yield, a relatively stable Rupee, Content Inflation, and ongoing fiscal discipline.
It further highlighted that Concerns Arind Economic Slowdown Are Being Balanced by Positive Trends Including Record-High GST Collections in April 2025 (Up 12.6 Percent Yoy) PMI, and Strong Export Figures – Shall of which Sugged that Economic Activity May Be Picking Up Pace. Additional, Foreign Institutional Investor (FII) Flows Have Turned Net Positive for Two Consecurable Months, Indicating Renewed Investor Confidence in the Indian Market.
Strategic Asset Allocation: Tailored Approaches for Equites and Debt
In terms of investment strategy, mopw recommends a lump sum approach for hybrid, Large Cap, And Flexi Cap Funds, Given the Market’s Stabilization and Fair Valuation Zone. On the other hand, for mid and small cap categories, the firm sugges a stagged investment approach over the next 2-3 months, with any market pullback offering an opportunity for more aggresivement.
In the fixed income space, the wealth manager noted that benign inflation and slowing growth have allowed the rbi to adopt a more accommodative stance, Pivoting towels Growth Support. The 10-Year G-Sec Yield has Remained Stable and Gradually Declined, Aided by Favorable Demand-Supply Dynamics and RBI Interventions Such as Omo Purchases, Term Repo Auctions, and Usd/inhRM REPO Auctions.
Given the current yield environment, mopw believes the steepning of the yield curve makes account strategies more attractive, while cautioning that long-term yields are not campelling enough for road Plays.
Neutral View on Gold after Record Highs
Gold pris touched all-time highs in April 2025, Driven by Global UncertainTies. However, Mopw Now Considers Gold to be overstretched, as some of that uncertainty has started to ease. As a result, the firm maintains a neutral stance on gold from an asset allocation percent.
Motilal Oswal Private Wealth’s Latest Strategy Note underscores a paradigm shift in investor focus -form reacting to macro events to riding the wave of corporate earnings. With much of the uncertainty now in the rear-View Mirror and India’s Economic Indicators Showing Resilience, The Stage appears set for fundaments to take charge.
Disclaimer: The views and recommendations made about individual analysts or broking companies, and not of Mint. We Advise Investors to Check With Certified Experts Before Making Any Investments Decisions.
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