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The Nifty ended 3% lower month-on-month (MoM) in May 2022 as the stock registered the second consecutive month of a decline. However, the Nifty has remained resilient in CY22 year-to-date (YTD) despite multiple headwinds as strong DIIs flows continue.

“We find more value in large-caps than mid-caps given the relative valuation equation. That said, we reiterate earnings delivery is crucial for markets to hold, in an adverse milieu of volatile and challenging macro," said domestic brokerage and research firm Motilal Oswal in a note.

Sharing its top stock picks in the midcaps and smallcaps space, the brokerage said its top ideas include Cholamandalam Investment and Finance Company, Macrotech Developers, Ashok Leyland, L&T Technology, Jubilant Foodworks, APL Apollo Tubes, GR Infraproject, Angel One, Sapphire Foods, VRL Logistics, and Lemon Tree Hotel.

Foreign institutional investors (FIIs) recorded the eighth consecutive month of outflows at $4.9 billion. However, the outflows were more than offset by material DII inflows. In May 2022, domestic institutional investors (DIIs) posted the highest inflows since March 2020 at $6.1 billion.

Over the last 12 months, MSCI India has outperformed MSCI EM. In P/E terms, MSCI India is trading at an 87% premium to MSCI EM, above its historical average of 61%.

Meanwhile, under largecaps, the brokerage house's top recommendations include Reliance Industries (RIL), Infosys, ICICI Bank, State Bank of India (SBI), Bharti Airtel, Titan Company, Ultratech Cement, Mahindra & Mahindra (M&M), Hindalco, Godrej Consumer, and Apollo Hospitals.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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