Markets Overview

As we bid farewell to March, we also mark the close of a significant chapter – the end of the quarter, the fiscal year, and what has been a remarkable year overall. Reflecting on March 2023, it’s fascinating to note how perceptions have shifted over the past year. Few could have predicted the market’s current trajectory, yet here we are, witnessing exceptional performance across both large and small caps. This unexpected surge coincides with the approaching elections, stirring unique dynamics within the market.

Nifty was remarkable the entire last week which was largely a 3 session week due to the Holi and Good Friday festivities. There was some profit booking towards the fag end of the FY 24 (last 30 minutes to be precise) but still the overall outcome was positive when compared to the previous week.

Benchmark Indices & WeekendInvesting Strategies Overview

Most folks would be quite satisfied with the way markets have turned up particularly in the last couple of weeks with superb recovery after a rocky start back in March 2024. This week, Smallcap 250 and Mid-small 400 were back in business with gains of 2% each which was much needed considering the downward slide these lower cap benchmarks had witnessed in early March 2024. Nifty Jnr was in its elements though recording superb gains of 2.9% thus topping the weekly chart as well while rest of the benchmarks witnessed gains between 1.4% and 1.8%. FY 24 has been a phenomenal year for Midcaps and Smallcaps with Mid-Small 400 recording a superb 58% gains followed by Smallcap 250 at 63% gains. But the real show stealer has to be Nifty Next 50 which has recorded a massive 60% gains, on par with midcaps and smallcaps. Nifty 50 put on a decent show clocking 28%.

Sectoral Overview

REALTY ended its chart topping FY24 run with a splendid 4.8% gains (weekly) and 132% (FY24). All sectors barring IT (-3%) had a good week. AUTO, INFRA, METALS & PSU BANKS performed quite week to recover from the earlier slumps. PSE came in a end position in FY 24 chart with gains of 103% followed by PSU BANKS at 88%. FY 24 proved to be very comforting especially after a difficult volatile phase in the markets prior to that. Most sectors managed to outperform the Indian benchmark, Nifty 50 with FMCG, BANKS and IT being the only ones to record underperformance.

AUTO sector has done well to get back right on top with a consistent run in the recent 6 months with INFRA taking the second spot. What is interesting to note is that neither AUTO nor INFRA have taken the top positions in any of the timeframes mentioned below but their consistent run has ensured that they occupied the top two spots as far as the overall average performance is concerned. REALTY has come back quite strong to top the weekly chart after a bit of a slump in the last month. This sector has also done consistently well across FY 24 barring the short profit booking period in Mar 2024. GOLD has slipped from #1 in monthly chart to #11 on the fortnightly while IT continues to languish at the bottom along with FMCG and MEDIA.

Rebalance Update for the week !

Spotlight - Mi NNF 10

Why should you have exposure to the Nifty Next 50 Index (Nifty Jnr) ?

A large cap index performing in line with a smallcap index is something that can throw a lot of people by surprise but that is exactly was Nifty Next 50 has done. Popularly called as the Nifty Jnr, this index comprises of stocks between #51 and #100 in the Nifty Universe. When you compare the performance of this index against the Smallcap 100 index and the Nifty 50 index over the last 20 years, you will notice that the Nifty Jnr’s performance has been nothing but outstanding and has caught a lot of attention for its Smallcap-like performance despite holding top quality large cap stocks.

What is happening is the fact that the best performing stocks from the mid caps graduate to enter the Nifty Jnr and continue their good performance thus aiding the index in putting up a solid performance.

Mi NNF 10 is a 10 stock – rotational momentum strategy that aims to extract alpha from this high performance Nifty Jnr Index.

The subscription fee for Mi NNF 10 increases to Rs 9,999 from Rs 7,499 effective 01 Apr 2024. So please do make use of this opportunity if you are still not subscribed.

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