Synopsis
Raamdeo Agrawal, Chairman of Motilal Oswal Financial Services, announced that the Indian stock markets have overcome their worst phase, signaling a period of recovery and growth. The markets have recently seen a significant upturn fueled by positive developments.Key Takeaways
- Indian equity markets hit a two-month high.
- Raamdeo Agrawal believes recovery is underway.
- Midcap and Smallcap stocks are leading the recent rally.
- Investors are advised to utilize a staggered investment approach.
- Government measures are expected to enhance economic growth.
New Delhi, March 24 (NationPress) With the Indian equity markets reaching a two-month peak on Monday, Raamdeo Agrawal, the Chairman and Co-founder of Motilal Oswal Financial Services Ltd, expressed optimism, stating that the most challenging times for the stock exchanges are behind us and "happy days are back".
Agrawal highlighted that following the recent downturn, the stock market is now stabilizing and poised for a phase of recovery and growth.
The recent surge in the Indian stock market can be attributed to favorable global and domestic developments, he noted.
In the past week, both Nifty and Sensex have increased by over 5 percent, with Midcap and Smallcap stocks leading the charge.
During this timeframe, the Nifty Midcap 100 index jumped by more than 8 percent, while the Nifty Smallcap 100 index soared by over 9 percent.
On Monday, the Sensex was trading at 78,050, reflecting a 1.49 percent gain during intra-day trading, and Nifty was at 23,688, marking a 1.45 percent increase.
According to the latest report from Motilal Oswal Private Wealth (MOPW), there is a positive outlook on equities for both the short and long term.
The brokerage recommended that investors continue to invest in large-cap and hybrid funds via lump sum investments, while gradually allocating funds to mid- and small-cap stocks over the next six months.
The report indicated that recent governmental initiatives aimed at enhancing consumption are likely to bolster economic growth.
However, the corporate earnings for the December quarter of FY2024-25 have not been robust enough to rejuvenate overall market sentiment.
Given the recent corrections, if equity allocation is below desired levels, investors should consider increasing their allocation by adopting a lump sum investment strategy for Hybrid and Large Cap funds, and a staggered approach over the next six months for Flexi, Mid, and Small Cap strategies, with accelerated investments during significant corrections, according to the report.
