Trend reversal: Growth, quality investing gain momentum, outdo value theme

In a falling interest rate scenario, impacts growth and quality stocks more positively, say experts

The equity market is witnessing a significant shift in investment preferences, as 'growth' and 'quality' themes regain traction, outpacing the 'value' theme.

This reversal is attributed to valuation comfort in quality and growth companies, coupled with the expected interest rate cycle reversal.

Quality and growth stocks in the NSE 500 index have delivered a median return of 13 per cent since June 1. On the other hand, non-quality and non-growth stocks have returned just 4 per cent, shows an analysis by PGIM India Mutual Fund (MF).

The asset manager defines 'growth' as companies that have seen average