India has emerged as a standout market over the last 12 months, a research report titled “Bulls and Bears” by Motilal Oswal Financial Services Limited has said.
As global market-cap declined by 16.8 per cent ($19.9 trillion) over the last 12 months, India’s market-cap rose 3.8 per cent, the report noted.
Barring Indonesia and India, all key global markets saw a decline in market-cap over the last 12 months, it added.
The research report further said that all major sectors in India ended higher in November.
Public sector banks at 16 per cent, metals (11 per cent), technology (6 per cent) and financials (4 per cent) were the top gainers.
Utilities, autos and healthcare were the only laggards, the report noted.
Commenting on the markets, the Motilal Oswal report said that “Nifty has maintained its winning streak as it touched a fresh high of 18,816, ending 4.1 per cent higher month on month at 18,758 in November.”
“The Nifty is up 8 per cent year to date on the back of strong FII inflows, a global recovery and a moderation in some commodity prices,” it said.
“FIIs recorded inflows for the second consecutive month at $4.7 billion, domestic institutional investors (DIIs) turned sellers at $0.8 billion in November. Midcaps and smallcaps underperformed largecaps by 2.2 per cent and 1.1 per cent respectively in November. Over the last 12 months, largecaps and midcaps have risen by 10 per cent and 8 per cent respectively, while smallcaps have declined by 6 per cent,” it added.
Commenting on the telecom sector, the report said that its revenue is expected to grow quarter on quarter led by 4G adds and data usage.
Subscriber data for September released by TRAI indicated a marginal decline in the active subscriber base as Bharti Airtel and Reliance Jio Infocomm added 2.5 million and 0.9 million subscribers respectively, while Vodafone Idea lost 3 million subscribers on a month on month basis.
Bharti Airtel raised its minimum recharge plan by 57 per cent for 2G users in Haryana and Odisha.
Sector revenue is expected to grow by 3 to 4 per cent quarter on quarter in third quarter of current fiscal on the back of decent 4G additions and rising data usage in the seasonally stronger third quarter of the fiscal, the report said.