Market Recap: Nifty Next-50 outperformed blue chips, Microcap 250 gained most
The new year began with positive trends in the stock markets, fostering optimism among investors, with an expectation that India’s robust macro fundamentals and strong corporate earnings will override geopolitical risks and inflation concerns.
Positive signals included the continued momentum in domestic corporate earnings, buoyant GDP growth, favorable projections for commodity prices, and the possibility of global interest rate cuts.
In January 2024, Indian equities started the new year on a positive trajectory, witnessing gains across broader indexes.
The Nifty-50 index remained relatively unchanged, while the Nifty Next-50 showcased robust performance, outpacing blue chips with a gain of 3.7%. Midcap 150 stocks surged by 4.7%, and Smallcap 250 stocks soared by an impressive 7.3%, according to insights report by Geojit.
However, the Microcap 250 segment saw the most significant increase, with gains of 9.9%, indicating a broad-based rally across various market segments.
The broader indices were hovering close to their 52-week highs, experiencing fluctuations ranging from -1.8% to -0.1% by January end, the report further said. Despite minor dips, the overall trajectory remained near peak levels, reflecting sustained market strength. Investors closely monitored these indices, anticipating potential shifts in market sentiment and considering strategic investment moves based on the prevailing trends.
Also read: Nifty 50 Junior outperforms Nifty 50 in February; 12 stocks surge up to 30%
Gold experienced a slight decrease of -0.6% in its value, while silver saw a more significant decline of approximately -2.2% in India. These changes reflect the ongoing fluctuations in precious metal markets, influenced by various factors such as economic indicators, investor sentiment, and geopolitical developments.
Over the past month, the 10-Year Benchmark Government Security (G-Sec) yields have continued to decline, reaching approximately 7.14%, reflecting a decrease of around -0.4%. This level mirrors those seen six months ago, indicating stability over that period, but marks a notable decrease from the 7.34% recorded a year ago. This easing trend suggests ongoing market adjustments and potential implications for Indian investors.
Also read: Is market correction on the horizon amid high valuations?
As per the Geojit report, the Indian rupee saw a slight uptick against the US dollar, closing at 83.1, marking a marginal gain of 0.04% in January this year. Earlier in August 2023, the rupee surpassed the crucial threshold of 83 against the greenback. Notably, in August 2022, it breached the psychological barrier of 80. Over the last six months, the rupee has depreciated by 1.0%, while over the past year, it has experienced a decline of 1.6%.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!
Download The Mint News App to get Daily Market Updates.
Published: 16 Feb 2024, 09:38 PM IST
