Motilal Oswal: India Valuations Handbook - Recovery Taking Shape; Mid-Caps Outperform Yet Again

Motilal Oswal: India Valuations Handbook - Recovery Taking Shape; Mid-Caps Outperform Yet Again

Statues of a bear and a bull sit on a windowsill at a stock exchange. (Photographer: Alex Kraus/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

The Nifty ended its three-month winning streak in September 2020.

With extreme volatility, the index oscillated in the range of approximately 800 points before closing 140 points or 1.2% lower month on month at 11,248.

In September 2020, institutional investor outflows of $0.8 billion were seen after four consecutive months of inflows.

Domestic Institutional Investor flows remained muted after two consecutive months of outflows.

Mid-caps outperformed large-caps for the second straight month. The Nifty Midcap100 was up 1.8% while the Nifty was down 1.2%.

Notably, over the last 12 months, Mid-caps are up 6% versus the Nifty’s fall of 2%.

The Nifty Mid-cap100 price to earning ratio now trades at 4% premium to large-caps at 20.6 times (versus 11.8 times in March 2020).

Click on the attachment to read the full report:

Motilal Oswal Bulls & Bears - India Valuations Handbook.pdf
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