Rural India performed quite well in November. The labour participation rate inched up and the unemployment rate dropped. As a result, the employment rate increased from 37 percent in October to 37.5 percent in November 2022.
India will underperform in the medium term due to Foreign Institutional Investors (FIIs) selling and premium valuations compared to its emerging market (EM) peers. However, we feel that it is a good time to consider stock ideas in the small caps category with value buying as the theme.
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