Up over 7%, Nifty Smallcap 250 outperforms major indices in July; check details

In addition, both 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 150 rose 18.039 per cent and Nifty Smallcap 250 was up 20.89 per cent.

In the last six months, both indices have clocked gains of 21.93 per cent and 22.60 per cent, respectively. Finally, even on a 12-month basis, both indices rose 26.31 per cent and 29.17 per cent, respectively – clocking the highest gains when compared to other major indices including Nifty 50 and Nifty 500, according to Motilal Oswal.

Foriegn institutional investors (FIIs) have pulled off a 700-point rally in the Nifty since the 3rd of this month at the start of the earnings season for the first quarter, according to analysts. ‘’Nifty has rallied around 5 per cent in the last one month mainly on FII buying and sustaining strong inflows into domestic mutual funds. Institutional support is likely to continue,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Realty, metals and energy led the charge, rising around nine per cent each. On the flip side, IT lagged with a modest one per cent rise in July. ‘’All sectors, excluding the diversified sector, contributed positively to NIFTY 500 returns, with the financial services sector making the most substantial impact.” said the brokerage.

In terms of economy, inflation rates came in higher than expected at 4.81 per cent, the first rise since February 2023.  India’s composite purchasing manager’s index (PMI) reached a peak of 61.9, with the services PMI being the highest in 13 years at 62.3.

Global Markets

Both emerging and developed markets delivered positive performance, with South Africa emerging as a standout performer, surging by an impressive 13 per cent. Within the US market, the NASDAQ 100 and S&P 500 indices recorded gains of 4 per cent and 3 per cent, respectively. 

IT sector dominated S&P 500’s gains. On the commodities side, the oil market witnessed a significant surge in prices of 16 per cent, the highest since January 2022. The crypto market was an exception to the green wave, as Bitcoin & Ethereum fell by ~4 per cent, followed by the collapse of FTX, one of the largest global cryptocurrency exchanges.

In terms of macro data, the Federal Reserve increased interest rates by 0.25 per cent, pushing benchmark borrowing costs to 5.25 per cent-5.5 per cent, the highest level since 2001.

In the US, the inflation rate fell to a third from its peak of 9 per cent in June 2022, now standing at 3 per cent. Inflation rates came in higher than expected at 4.81 per cent, the first rise since February 2023. 

Updated: 16 Aug 2023, 05:17 PM IST