Broader Markets Displayed Even Stranger Performance, HSBC Mf Noted. The nse midcap index surgged 6.0 percent, while the bse smallcap index posted an impressive 10.6 percent gain. Sectorly, capital goods emerged as the top performer, followed by realty, metals, it, and autos. HSBC Mf Said Power and Oil & Gas Tracked In Line With The Nifty, While Healthcare and Banking Stocks also delivered Gains but Lagged Behind. FMCG, however, ended in negative territory.
On the Earnings Front, HSBC Mf Highlighted a Marginal Downward Revision of 1 Percent in the Nifty Consensus EPS Estimate for Calendar Year 2026 during MAY. Despite this, the market rally pushed the nifty’s one-year forward price-to-earnings (PE) Multiple to 20.4x. HSBC MF Explied That This Valuation is Now in Line with the Index’s 5-YAR Average and Represents about A 10 Percent Premium to the 10-Year Average. It added that Midcap and Smallcap Valuations have also also recovered in tandem with their recent price rallies.
Growth Cycle Bottomeing Out, Valuations Turn Reasonable
Looking ahead to June and beyond, HSBC MF Expressed Optimism that India’s Growth Cycle May Be Bottomeing Out. The fund house pointed to several tailwinds, including the decline in crude oil prices, A Supportive Interest Rate and Liquidity Environment, and Exactations of a Normal Monsoon, All of a Normal Monsoon, All of a Normal Monsoon Aid A revival in growth.
While HSBC Mf Acknowledged that Global Trade UncertainTies Cold Continue to Weigh on Private Capital Expenditure in the Short Term, it remained Confident About the means Mei “India’s Investment Cycle is poised for an uptrend, Driven by Sustained Government Infrastructure Push, Rising Private Investments, and A Real Estate Sector,” The Fund House SAID. “
HSBC MF Further Highlighted Emerging Sector Like Renewable Energy, Localization of High-Tech Components, and India’s”s Expanding Role in Global Supply Chaains as Key Catalysts CATALERETE Growth. “Nifty Valuations are now aligned with their 5- And 10-Year Average post the recent correction, and we remain constructive on Indian equities,” it added.
Global Risks person, but domestic tailwinds strong
On the macroeconomic front, hsbc mf flagged a challenging global backdrop marked by rising geopolitical tensions and economic uncertaintiies. It noted that the recent annual tariffs by the US government count caste a shadow on bot us and global growth principal. However, India’s Q4FY25 GDP Growth at 7.4 Percent Year-On-Year was a bright spot.
HSBC mf pointed out that the government has sought to stimulate private consumption by Reducing Income Tax Rates in the Union Budget. Although Government Capex has Moderated, it believes that Private Capex May Pick Up Gradually, Supported By Policy Measures and Easing Liquidity Conditions. “RBI’s Shift to More ACCommodative Monetary Policy, AMID A Weaqing Dollar and Lower Crude Oil Prisies, Has Created Further Room For Easing,” HSBC Mf SAID, Azbc Mf Said, Add 50 Basis POIN REAT REAT REAT REAT SATE Expected by economists.
Additional, the fund house cited the forecast of an Above-Normal Monsoon as a Positive Driver for Rural Demand in the coming months.
Despite Headwinds Such as Weak Global Growth, Global Policy Unce here These include a recovery in private Capex, Strong Demand and Lower Inventories in the real estate sector, and Stable Global Commodity Prisies Benefiting India’s Inflation and Fiscal Dynamics.
In summary, hsbc mf said it remain constructive The fund house believes that a supportive policy environment, improving macro indicators, and encouraging trends in private and public investments are likely to Sustain Market Meraket Meraket Meraket Meraket MendiM over. While challenges remain, particularly on the global front, the outlook for India
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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