Smallcaps, microcaps lead market rally in June with gains up to 6.35 pc
New Delhi, July 17
Broader Indian equity indices outperformed benchmarks in June, as smallcap and microcap indices gained 4.29 per cent and 6.35 per cent respectively, a report said on Friday.
The report from Motilal Oswal Mutual Fund said the Nifty Midcap 150 gained 0.90 per cent for the month and delivered 17.21 per cent over three months.
The Nifty Smallcap 250 gained 4.29 per cent in June and the Nifty Microcap 250 jumped 6.35 per cent.
The three‑month returns of Nifty Smallcap 250 and Nifty Microcap 250 stood at 24.02 per cent and 33.09 per cent respectively.
The Nifty 50 gained 1.35 per cent in June and 6.87 per cent over three months but declined 6.47 per cent on a one‑year basis.
Among sectors, bank and realty recorded gains of over 6 per cent each, while IT and Metal saw declines of 9.56 per cent and 6.86 per cent respectively over the month.
IT and Metals recorded the lowest performance on a yearly basis, with returns of -32.48 per cent, and -15.91 respectively.
Metal over the past year has given returns of more than 31 per cent, healthcare 11.59 per cent and auto 10.92 per cent. Defence also delivered 7.32 per cent returns over the past year as well. The IT sector has however seen a consistent decline over the past year of 32.48 per cent.
Factor indices reflected a momentum-driven market, the report said, adding that Momentum led with a modest 1.65 per cent gain, while Low Volatility managed a modest 0.94 per cent rise. Quality was down by 2.02 per cent and Enhanced Value declined by -2.43 per cent.
Nifty 500 was up by 1.49 per cent in June, driven largely by financial services, consumer discretionary and healthcare sectors, even as information technology, commodities and utilities stayed negative.
FII inflows stood at Rs 4,669 crore for the month, with DII flows negative at Rs 36,553 crore, indicating a relatively cautious position.
— IANS
Reader Comments
Bhai, I don't understand this rally. Everyone is chasing momentum, but low volatility index only up 0.94%? That tells me people are gambling. Look at DII flows – negative Rs 36,553 crore! That means domestic institutions are selling. FIIs are buying but DIIs are cautious. Not a good sign for retail investors like us. Be careful, yaar.
😅 My IT stocks are bleeding! -32% in one year is painful. Meanwhile, metals up 31% and healthcare up 11.59%. I should have diversified more. But this microcap rally is tempting me to put in more. Need to control my FOMO.
Good news for those who bought smallcaps early. But read between the lines – Nifty 50 declined 6.47% on a one-year basis. The broader market is still shaky. Bank and realty gains of 6% each are nice, but IT decline of 32% shows the global slowdown affecting us. For every winner, there's a loser.
As someone who tracks Indian markets from abroad, this smallcap-microcap rally looks like a liquidity bubble. FII inflows of Rs 4,669 crore are modest. DII selling Rs 36,553 crore hints that smart money is taking profits. Retail investors buying the top of smallcaps might get burned. Just my two cents.
I don't trust this rally. My father told me 'when fruits are ripe, everyone wants to pluck them'. Look at Quality index down 2.02% – means people are buying junk stocks.
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