Equity Monthly Outlook: May2023 | Podcast by Quantum Mutual Fund

Equity Monthly Outlook by Christy Mathai, Fund Manager. May 2023

The S&P BSE Sensex rose by 2.8% in the month of May, supported by corporate earnings and improving macros. S&P BSE Midcap Index & S&P BSE Small cap Index increased by 6.3% and 5.5% respectively. Margins expansion driven by price hikes and initial signs of volume recovery led the rally in autos, the realty sector continued to do well given strong pre-sales by developers and IT also rebounded following a tough April month. The Metals and Energy sector underperformed the index driven by a weak global outlook. Summing up, we find India in a comfortable spot to benefit from a cyclical economic upcycle over the medium term and while there could be uncertainty emerging globally or in India, as the country is heading into national elections next year; investors should not be unnerved by the near-term volatility and focus on allocating prudently to equity based on their financial goals. Any sharp correction due to near-term headwinds can offer additional valuation comfort and should be used to allocate more to equities with a long-term perspective.

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