Perspective on Nifty touched all time high by Mr. Ajay Menon, Motilal Oswal Financial Services
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Below is Perspective on Nifty touched all time high by Mr. Ajay Menon, MD & CEO, Broking & Distribution, Motilal Oswal Financial Services Ltd.
“Nifty today touched its all-time high after its recent rally of more than 10% over last two month. Strong domestic macros, robust earnings growth and sharp correction in oil prices is big positive for Indian equities. For Q2FY23, Nifty companies grew by 9% as compared to expectations of flattish growth. Excluding the global commodities, the growth stood out strong at 33%. Going ahead too we expect the momentum to remain strong with expectation of Nifty earnings CAGR of 17% over next 2 years. The oil prices have corrected by ~15% and fallen to just above $80bbl which is positive for our oil import dependent economy. Even the wholesale and the retail inflation has cooled off and is showing signs of peaking out. Now with Fed’s commentary on slowing down the pace of rate hike has given boost to the global sentiments which along with strong domestic fundamentals is proving to be a boom for the Indian equities. At the same time, the festive season this year witnessed a buoyant demand – being the first one without any restrictions post 2 years of covid. The buoyancy in demand is expected to continue with the onset of marriage season. Apart from this the bank credit continues to grow in late teens over last few months and is expected to continue this uptrend with the pickup in capex from H2. India is entering big capex upcycle which would provide leg-up to the overall economy.”
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