In a month marked by market volatility, midcap stocks emerged as the top performers on an annual basis, even as broader indices faced headwinds. The Nifty Midcap 150 index dipped 3.53% in January but delivered an impressive 8.26% return over the past year, outshining its peers.
According to detailed market analysis, the index saw a 2.52% decline over the last three months and a modest 0.61% gain in six months. Amidst this, the Nifty 500 index found rare support solely from the commodities sector. Metals and defense stocks surged nearly 6%, providing a bright spot, while FMCG, realty, and consumer durables sectors plummeted between 6% and 11%.
The benchmark Nifty 50 fell 3.10% in January but climbed 7.71% annually. Nifty 500 remained nearly flat for the month with a 6.94% yearly gain. Smallcap and midcap indices, however, recorded losses of 3.53% to 5.52% in January.
Value stocks stole the show, rising 2.4% in January and a staggering 25% over the year, outperforming momentum, low-volatility, and quality factors. Silver dazzled as the top asset class, surging 43.34% in the month and 226.50% annually, while gold returned 14.06% monthly and 77.16% yearly.
Economic indicators painted a resilient picture. CPI inflation edged up slightly to 1.33%, and the 10-year bond yield rose to 6.70%. Domestic activity remained robust, with composite PMI at 59.5 and GST collections hitting 1.93 lakh crore, signaling strong underlying growth.
As investors navigate uncertainty, midcaps’ annual strength underscores their potential in a recovering market.