PSU banking stocks top gainers in Sept
Followed by telecom (9%), utilities (7%), oil & gas (6%) and capital goods (6%)
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We note that during the last 5 general elections (1999-2019), Nifty-50 rallied 10-32% six months prior to the announcement of election results. India will be going into general elections in March-May 2024, said Motilal Oswal Financial
New Delhi: All major sectors end higher in September with PSU Banks (+18%), Telecom (+9%), Utilities (+7%), Oil & Gas (+6%), and Capital Goods (+6%) as the top gainers, while media (-1%) was the only laggard, according to a report by Motilal Oswal Financial Services. The Nifty-50 reached the milestone of 20k last month.
After a volatile and long journey from 18k to 19k, the Nifty-50 added the next 1,000 points (19k to20k) relatively quickly in only 52 trading days (July-September) vs. 425 trading sessions (October21-June23) during its journey from 18k to 19k.
Despite the headwinds, however, the Nifty-50 managed to recover from its June 2022 and March 2023 lows to reach 20k, mainly fueled by strong FII/DII inflows of $19b/$9.3b between March 2023 and September 2023.
FIIs turned sellers of $2.3b in September after remaining net buyers for six months, as per a report by Motilal Oswal Financial Services.
FII and DII flows stand at $14.7b and $15.7b, respectively, in CY23YTD. DIIs recorded notable inflows of $2.4b in September 2023 as well after $3.0b of inflows in Augugst 2023, the report said.
“We reckon the upside from here will be a function of stability in global and local macros and continued earnings delivery vs. expectations. Moreover, we note that during the last five General Elections (1999-2019), the Nifty-50 rallied 10-32 per cent six months prior to the announcement of election results. India will be going into General Elections in March-May 2024,” the report said.
