Investors pivot to quality, fundamental picks over momentum: PGIM India MF

As investment patterns in the Indian markets shift to high growth and good quality stocks, PGIM India MF suggests a portfolio strategy

Indian equities are witnessing a significant shift in investment trends, moving away from momentum-driven strategies toward high-growth, quality companies, according to PGIM India Mutual Fund. Amid stretched valuations and increased market scrutiny, analysts advise focusing on portfolios with a strong domestic orientation.

Market rotation: From momentum to quality

Markets have regained the ground lost in the first half of the year. Between April 2023 and June 2024, low-quality, poor-growth stocks in the NSE 500 universe surprisingly led the rally, delivering 84 per cent returns, while high-quality names lagged slightly behind at 51 per cent, PGIM India Mutual Fund data shows.

 

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