SMIDs outperform large-caps
FIIs log record high outflows at $3.1bn in Jan; This is the highest ever outflow since Feb 2023.; FII inflows into Indian equities stood at $21.4b in CY23 versus outflows of $17b in CY22
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New Delhi: Over the last 12 months, mid-caps and small-caps have gained 58 per cent and 69 per cent, respectively, while large-caps have risen 23 per cent, as per a research by Motilal Oswal Financial Services. During the last five years, mid-caps have outperformed large-caps by 86 per cent, while small-caps have outperformed large-caps by 60 per cent.
The Nifty, after recording an impressive 20 per cent YoY gain in CY 23, has begun the year on a cautious note. The month was characterized by extreme volatility, with the benchmark oscillating in a wide range (1,000 points) and pulling back from record highs to close flat MoM, the report said.
In January 24, FIIs posted the highest outflows since February’23 at $3.1b. DIIs recorded the six-consecutive month of inflows at $3.2b. FII inflows into Indian equities stood at $21.4b in CY23 versus outflows of $17b in CY22. DII inflows into equities in CY23 remained strong at $22.3b versus $32.2b in CY22.
Among the sectors, the top gainers were Oil & Gas (+10 per cent), PSU Banks (+10 per cent), Real Estate (+9 per cent), Utilities (+9 per cent), and Infrastructure (+8 per cent). While Media (-10 per cent), Private Banks (-5 per cent), and Consumer (-3 per cent) were the top losers.
The breadth was balanced, with 25 Nifty stocks closing higher. ONGC (+23 per cent), Adani Ports (+18 per cent), Bharti Airtel (+13 per cent), Tata Motors (+13 per cent), and Bajaj Auto (+13 per cent) were the top performers, while HDFC Bank (-14 per cent), LTIMindtree (-13 per cent), Asian Paints (-13 per cent), HDFC Life (-11 per cent), and UPL (-8 per cent) were the key laggards, the report said, the report said. The Vote-on-Account was presented against the backdrop of a bullish macro and micro environment for India, with equity markets reaching new highs. Further, this was the last budget before the forthcoming Lok Sabha Elections in April-May, and thus, expectations of some populism were not unfounded, considering the underlying weak consumption demand in the economy, especially in rural India.
