New Delhi, 9 June (IANS). SBI Mutual Fund on Monday has ‘neutral’ the outlook of the Indian equity market, which was underweight since 2024. The reason for this was to perform well the Indian stock market amid global uncertainty.
The SBI ‘Market Outlook’ report said that this change from underweight equity towards neutrals represents a good market outlook and better long -term entry points for investors. However, we are still not ready to recommend overweight.
The report further stated that despite tariff uncertainties, the Indian stock markets rose in May. On monthly basis, Nifty and Sensex increased by 1.7 percent and 1.5 percent respectively. At the same time, Foreign Portfolio Investors (FPI) adopted a pure buyer’s stand, while there was a weak market weakness.
The report stated that corporate income has increased in single point in the fourth quarter of FY 25 and has been according to estimates. This helped prevent the decline in May.
According to SBI Mutual Fund, the profit of metal, healthcare, capital goods, PSU banks and chemical companies in the January-March period has gained good gains. Pressure was observed on the profits of private banks and oil and gas companies.
The report further stated, “Corporate income is expected to increase by about 10.5 percent in FY 26.”
“We estimate that India’s growth rate in FY 2026 will remain stable at 6-6.5 percent in FY 2026. However, tariff problems are currently postponed, but the global policy uncertainty is a risk to India’s growth,” the report stated.
In the fourth quarter of FY 25, RBI’s GDP growth rate was 7.4 percent, which has been 6.4 percent in the third quarter. This RBI and market estimates were more than 7.2 percent and more than 6.8 percent respectively.
-IANS
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