Business & Investment

Value vs. Growth Investment: Value V / s Growth: Which theme is working more effectively on Daral Street?

The first week of March began at a high level as India’s December quarter GDP growth returned to the positive territory. India is one of the few major economies out of the technological recession after two consecutive quarters of negative GDP growth.All credit for this recovery goes to government spending and low interest rates being maintained RBI, It led to the resumption of the economy and helped domestic consumption.

Market participants, especially FPI, examined GDP figures, became enthusiastic about domestic equities and pushed up the benchmark index. Another data point that supported the street was the GST collection, which exceeded 1 rupee five times in a row. All these statistics show a strong recovery in economic activity, especially in the areas of industrial manufacturing and infrastructure, strengthening optimism in financial markets.

Equities have once again approached their previous highs, and the debate over growth and value investment has resurfaced. This discrepancy MSCI World Value IndexThe MSCI World Growth Index rose 4.5% in February, as opposed to just 0.3%. Even in India, commodity stocks have rarely exceeded the benchmark index for long periods of time, making them suitable for value play. Similar to the MSCI index, Nifty The commodity index has surpassed the benchmark index in the past week. As you can see, value stocks have been gaining momentum for some time, and growth will continue to accelerate in the second half of 2021, which may lead to the development of value themes.

Faster vaccine deployments, strong fourth-quarter figures from last year’s lows, and a resurgence of growth in urban areas of India are all added to value investment groups. Therefore, investors need to continue to look for value buys for their investments.

This week’s event
Car sales in February 2021 were significantly positive, driven primarily by the recovery of the urban market and the strong traction of demand. Major passenger car manufacturers, especially motorcycle manufacturers, recorded remarkable double-digit year-on-year growth. In addition, tractor sales have successfully recorded strong growth of over 20% year-on-year, indicating a sustained recovery in rural areas.

This is one sector where the exorbitant rise in fuel prices has not yet had a significant impact. However, continued escalation can affect buyers’ emotions. It is imperative to pay attention to the number of vehicles in the coming months in order to understand the fundamental impact of fuel prices on future growth tracks.

Technical outlook
The Nifty50 closed the week with a positive note on the weekly chart, but the market witnessed a volatile trading week with a negative market width. The index ended positive during the week only for some heavy weights like RIL. Otherwise, it was losing its upward momentum. Other global indices such as S & P500, Kospi and Taiex all ended the week with weak notes.

ET contributor

On the positive side, Nifty could maintain the upper limit with an immediate resistance of 15,270, but on the negative side, immediate support is currently at the 14,630 level. Traders are encouraged to maintain a neutral outlook.

Expectations for this week
With no major events scheduled for next week in India, all eyes will look to the United States in search of new triggers. The unexpected outcome of the 3/10/30 Treasury auction scheduled for next week in the United States will have a direct impact on bond yields and thus on equity valuations. The IPO season is in full swing in India Daral Street In March, many major issues can arise in an attempt to gain momentum in abundant liquidity and strong investor sentiment.

Value and cyclic stocks have gained momentum in the last few months, and investors need to maintain their exposure to these value and cyclic stocks. Gold has returned from highs, allowing investors to allocate a small portion of their portfolio to gold for proper diversification.

Nifty50 finished the week at 14,938, up 2.81%.

Value vs. Growth Investment: Value V / s Growth: Which theme is working more effectively on Daral Street? Value vs. Growth Investment: Value V / s Growth: Which theme is working more effectively on Daral Street?

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