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Below the Quote on Equity Market Outlook for by Vinay Paharia, CIO, PGIM India Mutual Fund

 

The Nifty50 index recorded a gain of 1.6%, led by rally towards the end of the month. For FY24, the index was up 28.6%. NSE Mid Cap 100 index and NSE Small Cap 100 index saw respective correction of -0.5% and -4.4% compared to the respective increase of 60.1% and 68.9% during FY24. Indices for Auto, Infrastructure and Banking sectors outperformed the broader market while indices for Information Technology, Realty and FMCG sectors underperformed during the month.
Key macroeconomic developments for the month included Moody’s and Fitch Ratings raising India’s GDP growth forecast on the back of strong domestic consumption and capital expenditure; CPI inflation in February 2024 remaining unchanged at 5.1% versus January; India’s industrial production in January 2024 moderating to 3.8% versus 4.2% in December; and India’s CAD in Q3-FY24 moderating to 1.2% of GDP. Other key developments were India announcing the timelines for the upcoming Lok Sabha Elections and the US Federal Reserve guidance of three interest rates cuts during the remainder of 2024 despite higher inflation. During the month Foreign Portfolio Investors and Domestic Institutional Investors were net buyers to the tune of USD 3.7 bn and USD 6.8 bn respectively.

 

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