Non-Lending Q2 Preview - Healthy Momentum Seen Across Capital Markets, General Insurance, MF: Motilal Oswal

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Motilal Oswal Report

Capital market activity picked up momentum in Q2 FY23 across most parameters (volumes, orders) except client addition. Volumes in futures and option for both equities and commodities continue to surge, while cash volumes recovered.

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We expect all the companies under coverage to see a sequential uptick in revenues and profits.

General insurance industry saw growth momentum slowing down albeit previous quarters had the advantage of the base effect. Although the health segment slowed down, it remained healthy at 14% YoY in August 2022.

The motor segment too saw steady growth of 12% in July/August 2022. Health claim ratios are likely to be elevated with monsoon-related ailments and sticky Covid-related consumables/tests.

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Mutual fund assets under management for the industry grew month-on-month in July/August on the back of systematic investment plan volumes and positive mark-to-market, leading to increased share of equity in industry AUM.

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