Nifty 50 index surged more than 6 per cent in May, posting a record closing higher. The gains in the 50-stock index have been fuelled by robust FII inflows in the second half of the month and steady decline in everyday COVID-19 circumstances in India and strength in other Asian stock markets. So far in the calendar year 2021, Nifty 50 index has added 11.5 per cent. In April, NSE’s Nifty fell practically half a per cent due to a resurgence in COVID-19 circumstances across the nation. “Over the last 12 months, midcaps are up 94 per cent as compared to a rise of 63 per cent for the Nifty,” analysts at Motilal Oswal Financial Services mentioned.
Nifty trades at wealthy valuations post current run-up
The second COVID wave has now began to recede in June with the quantity of active COVID-19 circumstances down more than 50 per cent considering that May 9, 2021 to sub-18 lakhs now. There is higher visibility on vaccine provide now as compared to April’21 and May’21. The fall in active COVID-19 circumstances and accelerated pace of vaccinations would enhance and provide self-confidence in financial development recovery in FY22E, analysts at a domestic brokerage firm mentioned. “As states ease restrictions gradually in Jun’21, we expect the demand environment to get better. However, after the recent run-up, the Nifty now trades at rich valuations of 17.9x FY23 EPS. Thus, any misses in the FY22E earnings delivery may act as a dampener,” they added.
Top stock tips
Large cap stocks: ICICI Bank, State Bank of India (SBI), UltraTech Cement, Divis Laboratories, Hindalco Industries, SBI Cards and Payment Services, Infosys, HCL Technologies, Mahindra & Mahindra, HUVR, and Titan Company.
Midcap stocks: Gujarat Gas, Orient Electric, Varun Beverages, SAIL, L&T Technology, Cholamandalam Investment and Finance Company, Gland Pharma, Endurance Technologies, Emami, and Federal Bank.
During May 2021, Tata Consumer, Shree Cement, JSW Steel, Hindustan Unilever Ltd (HUL), Bharti Airtel and Britannia Industries have been index laggards.
Top-performing sectors in May 2021
– PSU Banks: 18%
– Media: 14%
– Utilities: 14%
– Capital Goods: 11%
– Oil & Gas: 10%
Top stocks in May 2021
– UPL: 34%
– IOCL: 20%
– SBI: 20%
– Asian Paints: 17%
– BPCL: 12%
Indian share marketplace outperforms worldwide markets
India emerged as the finest performing marketplace in May 2021, gaining 7 per cent. During the month, the important worldwide markets such as India, Brazil, China, Russia, MSCI EM, Korea, UK, and the US ended 1-7 per cent larger in regional currency terms. Analysts at the brokerage firm noted that in the last 10 years, MSCI India has outperformed MSCI EM by 127 per cent.
(The stock suggestions in this story are by the respective investigation analysts and brokerage firms. TheSpuzz Online does not bear any duty for their investment guidance. Capital markets investments are topic to guidelines and regulations. Please seek advice from your investment advisor ahead of investing.)