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Time of India
2 days ago
- Business
- Time of India
Indian stock market outperforms global market indices: Bandhan Mutual Fund
India emerged as the top-performing market globally in the three months ending May 2025, delivering a robust 16% return. In comparison, emerging markets gained 5%, while world and developed market indices saw modest gains of just 2% during the same period, according to the latest Bandhan Mutual Fund Monthly Market Outlook. According to the outlook, India is also the top performing market over a longer period of five years, delivering US dollar returns of 18%, beating the 12% return of the world and developed markets and delivering more than 4X the emerging market returns and India's returns from the lows hit on March 20. Source: Bandhan Mutual Fund June 25 Market outlook Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » In May, China stood out amongst major markets globally by falling 2%, whilst other major global markets saw gains. Also Read | NFO Insight: Baroda BNP Paribas Health and Wellness Fund opens. Is it the right prescription for your portfolio? Live Events In terms of market capitalisation, small caps have given the best returns over the last 3 months, 5 years and since March 2020. Mid caps were the second-best-performing capitalisation category over the same period, followed by the large caps. Source: Bandhan Mutual Fund June 25 Market outlook In May 2025, while most sectoral indices showed gains, utilities gave almost flat returns, while metals were marginally negative. In contrast, industrials, capital goods and telecom all delivered double-digit gains in May, while the lowest positive gains in the sector were delivered by the traditionally defensive sectors of FMCG, Healthcare and IT. India's Services Purchasing Manager's Index (PMI) increased m-o-m, indicating a service sector recovery. Conversely, the Manufacturing PMI declined m-o-m, indicating a slowdown in the manufacturing sector. Continued weakness in the US$, falling interest rates in the domestic economy, and earnings broadly in line with muted expectations helped drive the market higher in May 2025, said the fund house in its June 2025 market outlook. 'We expect continued volatility during the next couple of quarters, as the US continues to sign trade deals. While economic activity has remained strong due to the front-loading of global trade, there could be significant disruptions as the tariffs come into force. The domestic economy seems to be turning around and is much better placed than the global economy,' said Manish Gunwani , Head Equities, Bandhan AMC. Also Read | HDFC Defence Fund adds Bharat Forge and Bharat Dynamics in its portfolio in May On the fiscal front, India's FY25 central government accounts met the revised estimate of 4.8% of GDP , with the FY26 deficit budgeted at 4.4%. Inflation data showed negative momentum in CPI food prices for the sixth consecutive month, and core inflation inched up. The India Meteorological Department (IMD) forecasts an 'above-normal' southwest monsoon, contributing to a benign inflation outlook. Bank credit outstanding as of May 16, 2025 grew 9.8% YoY, with deposits up 10% YoY. 'The recent surprise 50 bps rate cut and 100 bps CRR cut by the RBI underscore a proactive stance to ensure rapid monetary transmission, aiming to support growth,' said Suyash Choudhary, Head fixed income, Bandhan AMC.
Mint
2 days ago
- Business
- Mint
Indian stock market gives 18% returns in 5 years, beats China, other global market peers; small-cap stocks outperform
Indian stock market has emerged as the top-performing globally, significantly outpacing both developed and emerging market peers over short and long-term horizons, according to the June 2025 Monthly Market Outlook by Bandhan Mutual Fund. For the three-month period ending May 2025, Indian equities delivered an impressive 16% return, sharply outperforming the 5% gain in emerging markets and the modest 2% rise in world and developed markets. The data highlights India's resilience and continued investor interest despite global uncertainties. Over a five-year horizon, Indian stock market has been the best-performing market in US dollar terms, delivering 18% annualised returns. This surpasses the 12% returns of world and developed markets and is over four times higher than returns from emerging markets, the fund house noted. In contrast, China saw a 2% decline in May 2025, standing out negatively among major global markets, most of which ended the month in green. Index/Returns in USD 3 Months 5-Year India 16% 18% World 2% 12% Developed Markets 2% 12% Emerging Markets 5% 4% From a market capitalisation lens, small-cap stocks have been the top performers over the last three months, five years, and since the pandemic lows of March 2020. Mid-caps came in second, followed by large-caps, highlighting the strong risk appetite and domestic participation in broader segments of the market. Time Period/ Returns 3 Months 5 Years Large-caps 13% 22% Mid-caps 17% 32% Small-caps 21% 36% Sector-wise, industrials, capital goods, and telecom led the rally in May with double-digit returns, driven by strong earnings and policy tailwinds. In contrast, FMCG, healthcare and IT, traditionally seen as defensive sectors, posted the lowest positive returns, while utilities were flat and metals saw marginal declines. India's Services PMI rose in May, pointing to a recovery in the services sector. However, the Manufacturing PMI slipped, reflecting some slowdown in industrial output. The fund house noted that a weakening US dollar, falling domestic interest rates, and earnings largely in line with expectations contributed to the robust market performance. 'The domestic economy seems to be turning around and is much better placed than the global economy,' said Manish Gunwani, Head Equities, Bandhan AMC. He also cautioned about near-term volatility due to global trade developments. 'As the US continues to sign trade deals, the front-loading of global trade has supported activity, but the introduction of tariffs could disrupt flows.' On the macroeconomic front, India's FY25 fiscal deficit met the revised target of 4.8% of GDP, with FY26 budgeted at 4.4%, indicating continued fiscal discipline. Inflation momentum appears benign, with food CPI showing negative growth for the sixth consecutive month, while core inflation edged higher. The India Meteorological Department's forecast of an above-normal monsoon is expected to support food supply and keep inflationary pressures in check. Meanwhile, the RBI's surprise 50 basis point rate cut and a 100 basis point CRR reduction signal a strong pro-growth bias, aimed at ensuring swift monetary transmission. 'This proactive stance is intended to support economic recovery and fuel credit growth,' said Suyash Choudhary, Head – Fixed Income, Bandhan AMC. As of May 16, 2025, bank credit grew 9.8% YoY, while deposits increased 10%, underscoring improving liquidity and confidence in the financial system. While India appears well-placed relative to global peers, Gunwani expects market volatility to persist in the coming quarters, driven by external uncertainties such as global trade realignments and geopolitical developments. However, strong domestic macro fundamentals, a benign inflation outlook, and supportive fiscal and monetary policy provide a solid cushion for Indian equities. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisio
