Indian indices outperformed many of its global peers in May defying the unabated second wave of the COVID-19 pandemic. Both Indian benchmarks, Nifty and Sensex, rebounded 6-7 percent in May after dipping around half a percent in April.

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Benchmark Nifty50 reclaimed the 15,000-mark and scaled to a record high of 15,582 on the last trading day of May, up 2 percent from its previous high of 15,314 on February 15.

"The overall trend of the market was constructive during the month. For the first half, the market was range-bound on account of mobility restrictions and the localised lockdowns. However, in the second half, the market gathered strength on account of declining COVID-19 cases and encouraging recovery rate," domestic brokerage Axis Securities noted in a report.

India performed better most global peers including China, US, Germany, Hong Kong, Taiwan, Korea, and Japan.

While Nifty rallied 6.5 percent in May, Shanghai was up 5 percent, DAX 3 percent, and Hang Seng, KOSPI, Dow Jones between 1-3 percent.

However, on a year-to-date (YTD), some benchmark indices such as Taiwan Weighted, Euro Stoxx 50, DAX, Dow Jones and KOSPI gave better returns than Nifty.

On a YTD basis, Taiwan Weighted rose the most, up 16.5 percent followed by Euro Stoxx 50, up 15 percent. Meanwhile, DAX, KOSPI, Dow Jones and S&P500 rose 12-14 percent in that period. Nifty has risen 11.5 percent in 2021 YTD.

Going ahead, Axis Securities believes that the market is looking for the timely unlocking of the economy and any delay in its reopening will pose a near-term risk to FY22 EPS. Notwithstanding near-term challenges, the overall market structure continues to remain positive, it added.

It advises investors that sector rotation and stock-specific approach will be keys for outperformance, moving forward.

Also, catch all the latest updates and developments from the stock markets today with CNBC-TV18's live blog.

(Edited by : Ajay Vaishnav)

First Published:Jun 2, 2021 3:14 PM IST