On Friday the Indian indices were trading lower dragged by financials and IT stocks. Index heavyweights HDFC twins, ICICI Bank, Axis Bank, and TCS contributed the most to the losses. Surge in global as well as domestic coronavirus cases also weighed on the sentiment.
The COVID-19 market crash this year was noted to be the worst crisis by analysts. However, despite all odds, PMS investors churned 56 percent profit in the April-June period. The portfolio management services (PMS) suffered great losses during the month of March this year, however, the ones who dared to stay in the market are now enjoying gains.
According to PMSBazaar.com, the large-cap-oriented Nifty index clocked a handsome 7.53 percent gain, but as many as 68 PMSes of the 170 beat the index. Simply put, 4 out of every 10 PMSes have generated alpha when compared to the 50-share Nifty index.
With the Indian markets witnessing broad-based recovery and the benchmarks see biggest quarterly rally since 2009 in the June quarter, things on the periphery might be starting to look bright. However, Axis Securities believes that there is no more valuation comfort left across the board this year.
Due to lack of valuation support and poor earnings forecast Axis Securities has come out with a December 2020 Nifty target of 10,620. The market has breached the mean valuations on the upside and we find the market not cheap even after considering the earnings are at the cyclical bottom, the brokerage firm said in a recent report.