Nifty smallcap outperforms benchmark, rises over 52% in 12 month; IT, healthcare top gainers in August

The NSE Nifty 50 benchmark rose 1.14 per cent in August, while all broad-based indices closed relatively flat but still delivered positive returns. The Nifty smallcap 250 index outperformed the major indices, rising 1.24 per cent last month, 16.28 per cent in the last three months, 21.42 per cent in the last six months, and 52.29 per cent in the last 12 months.

Nifty Midcap 150 has experienced a 13.55 per cent surge over the past three months, 22.96 per cent growth over the past six months, and a 49.22 per cent increase over the past year. According to domestic brokerage Motilal Oswal Financial Services, midcaps have outperformed large caps by 150 per cent during the last five years, while small caps have outperformed large caps by 126 per cent.

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The Nifty 50 benchmark rose 12.01 per cent over the last three months, 18.14 per cent over the past six months and 40.24 per cent over the past year. In its best winning streak since its launch in 1996, the NSE Nifty 50 rose 83.95 points or 0.33 per cent to hit a new lifetime closing high of 25,235.90 last Friday. 

This extended its victorious run to the 12th consecutive session, its longest-ever rally—a streak not seen in 31 years. The benchmark then rose for the first two sessions again this week before taking a breather on Tuesday.

Sectoral View

The healthcare and information technology (IT) sectors delivered returns of 5.50 per cent and 4.74 per cent, respectively. Real estate was the worst-performing sector in August 2024, with negative returns of -3.69 per cent. However, it has grown 88.65 per cent in the past year. 

In contrast, the bank and metal sectors have seen negative returns of -0.39 per cent and -1.86 per cent, respectively. After experiencing a streak of positive returns for three and six consecutive months, the automobile and energy sectors faced a setback in August with a -1.92 per cent and - 0.75 per cent decline.

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Global markets

In the US, the S&P 500 gained 2.3 per cent, while the Nasdaq 100 gained 1.1 per cent, 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 downward and fell by 5.2 per cent in August amidst weakening global demand. Amid global uncertainties, gold and silver surged by 3.6 per cent and 3.2 per cent, respectively. The crypto currency markets experienced substantial declines. Bitcoin dropped by 8.6 per cent, and Ethereum saw a significant decrease of 22.1 per cent.

Stock market today

Sensex and Nifty 50 ended lower on Thursday, September 5, with shares of select heavyweights such as Reliance Industries and Bharti Airtel as the top drags. The Sensex closed 151 points, or 0.18 per cent, lower at 82,201.16, while the Nifty 50 settled at 25,145.10, down 54 points, or 0.21 per cent. The mid and small-cap segments, however, closed with gains. 

The BSE Midcap and Smallcap indices closed 0.27 per cent and 0.56 per cent higher, respectively. The lack of fresh catalysts and weak global cues kept market sentiment. Investors are now focused on the monthly jobs report in the US, due out on Friday, which will be a significant factor in influencing expectations about the size and extent of Fed rate cuts.

Also Read: Stock market today: Sensex, Nifty 50 close in the red; mid, small-caps outperform

‘’After the gap-up opening, Nifty gradually declined and closed with a minor loss of 54 points at 25,145 levels. Stock-specific action supported the rally in broader space, especially in smallcap 100 which was up one per cent. Sector-wise it was mixed with buying seen in consumer durables & IT,'' said Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd.

‘’After witnessing a four per cent run-up in the last month, the market has paused and is trading at higher zones with every dip being bought at. We expect this consolidation to continue in the near term on the back of healthy domestic cues despite global volatility and key US Job data lined up,'' added Khemka.
 

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.