Q4 FY23 LEADERS & LAGGARDS

While Financials and Auto Lift the entire earnings, Metal and Energy dragged the earnings

Market Outlook

The Indian equity market closed in green for the second consecutive month in the month May 2023, as investors assessed the impact of various factors. The expected pause in US Fed rate hike, RBI’s monetary policy stance, positive global cues, higher FIIs inflows and not to forget better than expected March quarter numbers led to such enthusiasm among investors. The market ended the month with a positive return with Sensex rising by 2.07 per cent in May, while the Nifty gained 2.13 per cent. What also helped frontline indices is Adani Group stocks, which hugely gained following a near clean chit by market regulator, which helped restore investor confidence and buying in Adani Group of stocks. The Sensex closed at 62,621.08 on May 31, while the Nifty closed at 18,541.00. The top gainers in the Nifty 50 in the month of May were Adani Enterprises, IndusInd Bank, Bajaj Finance and Eicher Motors. More than two third, almost 67 per cent of the Nifty 50 constituents closed in green in the month of May. Stock that remained laggard in the month of May were from commodities and pharmaceutical sector.

For the entire year Nifty ended with an 11% EPS growth on a high base of 34% growth in FY22. Earnings, though remain lopsided with BFSI driving almost entire incremental earnings in FY23. With healthy macros, range-bound oil prices, a robust fiscal balance sheets, and moderating inflation, the backdrop for the market is quite optimistic.

BSE 500 Aggregate Performance