Small-Caps Cheer Growth Investors!

Small-Caps Cheer Growth Investors! 

The global markets, after hitting their record highs, are showing some signs of fatigue. However, Indian markets have shown some relative strength in the past couple of weeks, with broader markets outperforming the major benchmark indices. 

The global markets traded mixed in the past couple of weeks, even as Nasdaq remained the biggest gainer by clocking 6.52 per cent gains. Hang Seng was the best performing Asian market, recording gains of 2.18 per cent, Shanghai closed 0.33 per cent higher, while Nikkie slipped 0.39 per cent.. Dow Jones Industrial Average slipped 0.14 per cent, while S&P 500 closed down by 0.29 per cent. European indices such as DAX & CAC 40 managed to close down by 2.26 per cent and 1.31 per cent, respectively. 

Major Indian benchmark indices posted losses in the past couple of weeks, with Sensex losing ground by 0.07 per cent and Nifty by 0.26 per cent. The broader markets outperformed the major indices with Small-cap index rising by an impressive 4.06 per cent. Mid-cap index too was up by 2.76 per cent in the past couple of weeks, thus outperforming the major benchmark index. Realty index was the best performing sectoral index in the last couple of weeks, gaining 8.56 per cent followed by Power index, which was up by 4.49 per cent and Metal Index which was up by 3.69 per cent. The IT index was up by 3.32 per cent, while FMCG index was up by 0.13 per cent. Banking stocks underperformed in the last couple of weeks and this was reflected in the drop of nearly 1.43 per cent in Bankex. 

The FIIs continued to be net sellers in the market yet again. However, the net sales figures remained subdued this time around at Rs 169.41 crore. The DIIs maintained their buying spree, pumping in Rs 3417.41 crore in the markets. 

The markets have started to discount the budget expectations and are trading with optimism, taking cues from the economic data. India’s manufacturing activity showed strength in the month of December. The Nikkie India Manufacturing Purchasing Manager’s 

Index rose to 54.7 in December, as compared to 52.6 in November. 

The commodity prices firmed up over the last couple of weeks, with crude oil jumping by almost 7 per cent and gold prices rising by 4 per cent. 

The previous couple of weeks saw realty, metals and power stocks outperform the broader markets. In the coming week, investors will be keenly tracking the performance of auto stocks as the sales data released by the auto companies have impressed the market participants.

Major Indian benchmark indices posted losses in the past couple of weeks, with Sensex losing ground by 0.07 per cent and Nifty by 0.26 per cent. The broader markets outperformed the major indices with Small-cap index rising by an impressive 4.06 per cent. Mid-cap index too was up by 2.76 per cent in the past couple of weeks