Equity market continue to remain positive due to strong corporate earnings and capex.
Large cap index is in fair valuations, mid cap and small cap segment trading at higher valuations compare to large cap.
Nifty 50 trading at 22.4 PE with EPS of 1054. Nifty 50 1 year forward PE still trading at much lower valuations at 19.4x compare to current PE.
Nifty midcap 100 PE trading at 30.1 compare to 10-year average PE of 21.3x. Same Nifty small cap 100 PE trading at 19 compare to 10-year average PE 16.2.
Current Nifty EPS trading at 1054, is expected to have double digit EPS growth by FY25-FY26. EPS may reach 1142 & 1327 respectively.
Geopolitical tensions, gold buying from central banks and fed rate cut has supported the rally of gold price. Gold still remains bullish.
US fed may cut the rate by Q3FY24. Due to that RBI also has to maintain current interest to ensure that external flows should remain strong.
May month was strong for equity and fixed income. Global bond gained by 1.3% as expected rate cuts in coming quarters. As of now June month also was strong for equity due to continuity of same govt.
US PMI data shows positive sign, PMI touched higher to 51.3 in May 24 compare to 50 in April.
India PMI decreased to 57.5 in May 24 from 58.4 in April, but still have seen substantial improvement in manufacturing sector due to rise in new orders which supported a faster expansion in production and output.
Real GDP growth is around 7.8%. Expected to grow by 7.2% by FY25-26.
RBI kept repo rate unchanged at 6.5%. Inflation is at 4.8%
GST collections in May 24 reached 1.7 Lakh 10% increment YOY, derived by 15.3% surged by improved tax compliance, robust economic activity and domestic transactions.
Indian market cap crossed USD 5 trillion first times on 21st May 24.
Corporate earnings are strong, Nifty pat growth was 26% YOY vs 11% in FY23. Nifty is expected to grow by 15% in FY 25-26.
Mutual Fund AUM increased from 9.1 lakh crore to 58.6 lakh crore in past 10 years.
SIP contribution touched a record high of Rs. 20904 crore.
Gross fixed capital formation increases to Rs. 15701 billion in the first quarter 2024 compare to Rs. 14066 billion.
Nifty 500 risen 38% due to strong earnings growth. Nifty 500 PE trading at 25.9, still below its 5-year average.