Key Points
Market rebounds with Nifty and Sensex surging over 5%
Midcap and Smallcap stocks lead recent rally
Government measures expected to boost economic growth
Strategic investment recommendations for next six months
Agrawal said that after the recent correction, the stock market is finally stabilising and ready for a period of recovery and growth.
The Indian stock market witnessed a sharp rally in the recent time due to positive global and domestic updates, he added.
In the past one week, Nifty and Sensex have surged more than 5 per cent. Midcap and Smallcap stocks contributed the most in the recent rally.
During this period, the Nifty Midcap 100 index shot up by more than 8 per cent and the Nifty Smallcap 100 index surged more than 9 per cent.
On Monday, Sensex was trading at 78,050, with 1.49 per cent gain in intra-day trade, while Nifty was at 23,688, with 1.45 per cent gain.
In its latest report, Motilal Oswal Private Wealth (MOPW) remained optimistic about equities in both the short and long term.
The brokerage firm suggested that investors should continue to invest in large-cap and hybrid funds through lump sum investments while deploying funds into mid- and Smallcap stocks in a staggered manner over the next six months.
The report said that recent government measures to boost consumption are expected to support economic growth.
However, corporate earnings in the December quarter of FY2024-25 have not been strong enough to revive overall market sentiment.
Considering the recent corrections, if equity allocation is lower than desired levels, investors can increase allocation by implementing a lump sum investment strategy for Hybrid and Large Cap funds, and staggered approach over the next 6 months for Flexi, Mid and Small cap strategies with accelerated deployment in the event of a meaningful correction, according to the report.
