In addition, both Nifty Smallcap 250 and Nifty Midcap 150 indices have outperformed the other indices when compared on a three-month, six-month, and on an annual basis. In the last three months, Nifty Midcap rose 3 per cent and Nifty Smallcap 250 was up 5.89 per cent.
In the last six months, both indices have clocked gains of 21.96 per cent and 28.01 per cent, respectively. Finally, even on a 12-month basis, both indices rose 22.73 per cent and 28.29 per cent, respectively – clocking the highest gains when compared to other major indices including Nifty 50 and Nifty 500, according to Motilal Oswal.
In October 2023, Indian stock markets exhibited a negative trend, highlighted by a 3 per cent fall in the Nifty 50 index, with the Midcap 150 index leading the decline at 4 per cent.
Also Read: Up over 33%, BSE Smallcap outperforms all major indices in last one year; check details
With the exception of realty, all sectors reported negative performance. The metals sector saw the steepest decline, dropping by 6 per cent. Factor-based investment strategies, including momentum, low volatility, quality, and value, all delivered negative returns for October. The momentum experienced the most significant decline at 4 per cent.
On the return contribution side, The Financial Services sector remained a key driver of returns for the Nifty 500 index, contributing 0.88 per cent to the overall 2.84 per cent decline in the index during October 2023, according to the domestic brokerage.
Domestic equity benchmarks Sensex and Nifty 50 settled higher on Friday, November 10, supported by fag-end buying in select heavyweights, including HDFC Bank and ITC, despite weak global cues. Concerns over interest rate hikes persisted after Fed Chair Jerome Powell’s hawkish comment on Thursday while the Israel-Hamas continues.
Going into Samvat 2080, analysts expect markets would continue its outperformance on the back strong earnings and strong economic outlook.
‘’Nifty ended the Samvat 2079 on a positive note despite several global challenges. Nifty gained 9.4 per cent in this period and made a new life high crossing 20k mark for the first time. As we get into Samvat 2080, we believe markets would continue its outperformance on the back strong earnings and healthy economic outlook,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Global Markets
In the US, S&P 500 and NASDAQ 100 both experienced a 2 per cent decline in October 2023, with the healthcare and consumer discretionary sector being the largest contributor to the S&P 500’s fall.
Globally, both emerging and developed markets saw negative performance, with declines of 4 per cent and 3 per cent, respectively. South Korea witnessed the most significant drop at 7 per cent, while Switzerland led the decline in developed markets with a 5 per cent fall.
Crude oil prices nosedived by 11 per cent during October, due to rising geo-political risks, low demand from the US and mixed Chinese data.
On the commodities front, precious metals were in the green with gold and silver prices rising by 7 per cent and 1 per cent respectively, amid rising tensions in the middle east. Cryptocurrencies such as Bitcoin and Ethereum went soaring at 29 per cent and 9 per cent, respectively.
Technical View
Markets continued volatile trading and after the initial downtick, the Nifty inched gradually higher and settled around the day’s high at 19,442.70 levels. Meanwhile, a mixed trend on the sectoral front kept the traders occupied wherein metal and energy posted decent gains while auto and IT were on the back foot. The broader indices continued their outperformance and gained over half a percent each.
‘’We are seeing rotational buying across heavyweights, which is helping the index to hold strong amid consolidation. Markets are now awaiting fresh triggers and it could probably be from the global markets. Meanwhile, traders should stay focused on stock selection and maintain a positive bias until the Nifty breaks 19,200,” said Ajit Mishra, SVP – Technical Research, Religare Broking Ltd.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Updated: 10 Nov 2023, 04:38 PM IST