Indices Remain Flat in August: Smallcap Up 52%, Microcap Soars 58% Over the Year

Indices Remain Flat in August: Smallcap Up 52%, Microcap Soars 58% Over the Year: Motilal Oswal Asset Management Company

 

·        Nifty smallcap 250 surged 1.24% in August

·        Nifty Microcap 250 surged 1.17% in August

·        Nifty 50 surged 1.14% in August

·        Nifty 500 surged 0.87% in August

·        Nifty Next 50 surged 0.66% in August

·        Nifty Midcap 150 saw a surge of 0.30% in August

·        The Nifty 500's gains were primarily driven by the IT, Healthcare, and Financial Services sectors, while Industrials contributed the least.

According to Motilal Oswal Asset Management Company's Global Market snapshot report, all broad-based indices closed relatively flat but still delivered positive returns.  The Nifty smallcap 250 surged 1.24% in the month of August, 16.28% over the last 3months, 21.42% over the past 6months and 52.29% over the year.  The Nifty Microcap 250 has surged 1.17% in the month of August, 21.60% over the last 3months, 24.20% over the past 6months and 58.01% over the past year. The Nifty 50 has surged 1.14% in the month of August, 12.01% over the last 3months, 18.14% over the past 6months and 40.24% over the past year.

 

The Nifty 500 has experienced a growth of 12.47% over the past 3 months, 22.23% over the past 6 months, and a one-year growth change of 54.60%.

The Nifty Next 50 has shown a growth of 11.48% over the past 3 months, 27.61% over the past 6 months, and 69.49% over the past year.

The Nifty Midcap 150 has experienced a 13.55% surge over the past 3 months, 22.96% growth over the past 6 months, and a 49.22% increase over the past year.

Healthcare & IT sector continued their upward journey and delivered returns of 5.50% & 4.74% respectively while Realty was the worst performing sector in August 2024 with negative returns of -3.69% however, it has shown of growth of 88.65% in past one year. In contrast, the Bank & Metal sectors have seen negative returns of -0.39% & -1.86% respectively. After experiencing a streak of positive returns for three and six consecutive months, the Automobile & Energy sector faced a setback in August with a -1.92% & - 0.75% decline.

Momentum and Low Volatility strategies have delivered positive returns consecutively for the past 3months, 6months & 1year, whereas the Value and Quality strategies experienced negative returns of -0.73% & 0.26% respectively.

The Nifty 500's gains were primarily driven by the IT, Healthcare, and Financial Services sectors, while Industrials contributed the least.

Global Market Update

In the U.S., the S&P 500 gained 2.3%, while the Nasdaq 100 gained 1.1%, both posting positive performance.  All developed and emerging market indices posted positive returns, with Korea being the sole exception as the only negative performer. 

Crude oil prices continued the downward trajectory and fell by 5.2% in August, amidst weakening global demand. Amid global uncertainties, Gold & Silver surged by 3.6% & 3.2% respectively. The crypto currency markets experienced substantial declines. Bitcoin dropped by 8.6%, and Ethereum saw a significant decrease of 22.1%.

Quick Take

India's retail inflation fell below the RBI's 4% target for the first time in nearly 5 years, while inflation in the U.S. also continued to ease.  DIIs were net sellers, primarily in the debt segment, while the equity segment continued to attract inflows. U.S. unemployment reached 4.3%, the highest level in nearly 3 years, driven by a slowdown in hiring and a notable increase in temporary layoffs.

 

 

 

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