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The Nifty small and mid-cap stocks outperformed the broader market in April 2024, according to a report by Motilal Oswal Asset Management Company. The Nifty Microcap 250 and Smallcap 250 indices, which track the performance of the smallest 250 and 500 publicly traded companies in India, respectively, surged an impressive 10.6% and 10.5% in April.
In the last one year, the Nifty Microcap 250 has seen a remarkable 86.82% growth, while the Nifty Smallcap 250 has grown by 68.57%.
The Nifty Next 50, which tracks the performance of the next 50 companies in line to join the Nifty 50 index, also witnessed healthy growth of 7.05% in April. Even the broader Nifty 500 index, which includes the top 500 companies, grew by a respectable 3.66% in April 2024.
The Nifty Microcap 250 Index has seen a drastic change in performance and has surged from a 2.26%, 29.67% & 86.82% growth during last three months, six months and one year.
The Nifty Smallcap 250 Index has been performing well has given a 5.11%, 31.68% & 68.57% growth during last three months, six months and one year, respectively.
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The Nifty Next 50 as well has seen a consistent growth of 17.36%, 47.44% and 64.25% during the last three months, six months and one year, respectively.
Metals and realty take the lead in April
Sector-wise, metals continued their strong run, leading the pack with an 11.1% surge in April. Real estate also showed consistent growth, rising 8.06% last month, adding to its impressive 1-year growth of 118.66%. The energy and auto sectors also witnessed positive growth, rising 3.45% and 4.95% in April, respectively.
Value investing wins in April
All factor-based investment strategies delivered positive returns in April. Value stocks, which are typically those considered to be undervalued by the market, led the way with a notable increase of 9.9% in April and a significant 90.43% growth over the past year. Momentum investing, which focuses on stocks with a history of rising prices, also saw gains, rising 5.84% in April and 68.66% over the year.
Nifty 50 Movers
The financial services, consumer discretionary, and commodities sectors were the top contributors to the overall returns of the Nifty 500, resulting in a positive impact of 2.8%. The IT sector was the only negative contributor, with a -0.5% return in April.
Global markets are a mixed bag
While the Indian market experienced positive growth, US markets declined in April. The S&P 500 and NASDAQ 100 fell by 4.2% and 4.5%, respectively. China, on the other hand, led emerging markets with a growth of 6.6%. The UK was the only positive performer among developed markets, rising 1.1%.
Oil prices stabilize, cryptocurrencies correct
Oil prices found stability in April due to easing tensions in the Middle East and expectations of a delay in US interest rate hikes. Silver outperformed gold, surging 8.6% on the back of rising industrial demand. Bitcoin and Ethereum experienced a corrective phase, declining 14.9% and 17.4%, respectively.
Positive signs for Indian economy
Monetary policy actions have helped bring down India's annual retail inflation to 4.85% in March 2024, the lowest level since May 2023. Manufacturing and services sectors are expanding strongly, with the composite PMI surging to a 14-year high of 62.2 in April 2024. Goods and Services Tax (GST) revenue collection also hit a record high, surpassing Rs. 2 lakh crore for the first time ever in April.
