Motilal Oswal: India Experiencing a Mini Goldilocks Moment, Embracing ‘Amritkaal’

Growth in FY2024 has been broad-based as all the indices and sectors delivered positive returns, it said.

Indian capital markets are set to embrace Amritkaal (golden era), Motilal Oswal’s (MOSL) said in its latest India strategy report. India is set to exit FY2024 with a GDP of $3.6 trillion and growth of more than 7.6 per cent, it said as the country is having a “mini-Goldilocks moment” with strong macroeconomic conditions and corporate earnings. These are supported by healthy flows in the economy as demat accounts have grown to 151 million in March 2024 from 36 million in March 2019, it noted.

Growth in FY2024 has been broad-based as all the indices and sectors delivered positive returns, it said, adding that the year was a good one for small and mid-caps as both the Nifty Midcap 100 and the Nifty Smallcap 100 outperformed the Nifty-50 by a wide margins.

Top sectoral gainers in FY2024 included Real Estate (133 per cent), PSU Banks (89 per cent), Capital Goods (77 per cent), Auto (75 per cent), Energy (71 per cent), Healthcare (58 per cent), Metals (50 per cent).

What the report said?

The report noted that “India now boasts a unique combination of size and growth” and domestic cyclical themes such as “financialization of savings, private capex revival, rising discretionary consumption, a strengthening real estate cycle, and the massive development of digital and physical infrastructure” will play a role in the country’s growth story.

MOSL said that it expects to see some intermittent volatility because of major events such as the Lok Sabha Elections, mid- and small-cap valuations and global macro shake-ups.

Which sectors are expected to grow?

As per the report, growth will be seen in Healthcare (33 per cent), Cement (32 per cent), Consumers (7 per cent), Capital Goods (5 per cent) and Technology (4 per cent).