Sensex off to good start to 2018, rises 5.6% in Jan; broader markets lag

While the frontline indices have done well, the broader market saw losses in January

The benchmark Sensex gained 5.6 per cent in January, its best monthly start to a calendar year since 2015 and third-best start since 2002. The optimism, however, was largely restricted to frontline stocks, with the broad market-based BSE Midcap and BSE Smallcap indices ending with close to three per cent losses. The advance-decline ratio also points to weakness, with two components (of the BSE 500, Midcap and Smallcap indices) ending with losses for every one gain. 

After logging gains in January, the market has ended the full year with losses only on two occasions—2002 and 2012. In 2012, the Sensex had