India Weekly Kickstart

The NIFTY index saw modest gains led by the banking sector, despite a broad-based moderation in domestic mutual fund flows. Macro data showed rising inflation and potential for a stronger El Niño, while forward EPS revisions remained subdued.

Key Takeaways

• 1.NIFTY gained 1% w/w, led by Banks, while IT lagged.
• 2.Domestic fund flows moderated across most asset classes in May, including a sharp 40% mom drop in equity fund inflows.
• 3.India headline inflation increased in May; El Niño conditions are likely to strengthen in Q4.

Table of Contents

• Focus: Domestic fund flows moderated in May
• Earnings Revisions
• Views: MW India; Expect NIFTY to reach 26,500 in 12m
• Performance summary: Global Markets, Commodities, FX, and Rates
• India: Sector performance
• Relative performance of MSCI India sectors
• Thematic monitor
• Style investing monitor
• Valuations
• FII equity flows
• Foreign positioning in India
• India Equity Risk Barometer (GSSRIERB)
• Market Breadth, Volatility and Derivatives Positioning
• Disclosure Appendix