Markets Overview

The year 2023 has been an eventful one for the financial markets, and as we approach the end of the year, it's time to review the market trends of the last week of December. The week was marked by a surge in market activity, with the markets soaring to near all-time highs. This can be attributed to new allocations towards emerging markets, particularly India, which typically happens towards the end of the year. 

It is evident that the market has been on an upward trajectory for the past eight weeks. However, it's important to note that the market is characterized by periods of lumpy gains and long periods of stagnation. It's crucial for investors to remain invested and wait for these lumpy gains to occur, as they have historically been a recurring phenomenon. In fact, looking at the market history of the past 20-30 years, there have been very few periods without significant gains. This is why most experts recommend staying invested for at least four or five years to experience these major market moves in one's investment journey.

Benchmark Indices Overview

In terms of benchmark performance for the week, Nifty Next 50 index performed the best among the top indices, with a gain of 2.7%. The mid and small-cap indices also showed positive performance, with gains of 2.1% for both the CNX 200 and CNX 500 indices. The small-cap index and Nifty index both recorded gains of 1.8%.

Looking at the FY 24 performance, it's worth noting the impressive performance over the past nine months. The Nifty Next 50 index delivered a remarkable 41.1% return, while the mid and small-cap indices performed equally well with gains of 53.6% and 31% respectively. The CNX 200 and CNX 500 indices recorded returns of 31% and 33.5% respectively. Small-cap 250 and Nifty indices also showed strong performance, with gains of 59.8% and 25.2% respectively.

WeekendInvesting Overview

Mi 25 took the top spot with a gain of 4.1% for the week. This strategy has been performing exceptionally well, with a 60% gain for the financial year 2024. Mi India top 10 also outperformed the Nifty index dramatically, delivering a 3.7% gain for the week and an impressive 38.6% return for the financial year. Mi Evergreen, Mi ST ATH, Mi 35, Mi NNF 10, Mi 30, Mi ATH 2, and Mi 20 are among the other strategies that demonstrated strong performance, with weekly gains ranging from 1.7% to 3.4%, and returns for the financial year between 31.5% and 95%.

Sectoral Overview

AUTOs led the pack with a gain of 4.7% for the week, followed by the metals sector with a gain of 4.3%. FMCG, commodities consumption, and public sector enterprises also showed positive momentum, with gains ranging from 3% to 4%. On the other hand, the energy sector experienced some weakness, along with infra and some PSU banks.

Overall, it's important to note that the market has witnessed a rotation in sectoral momentum. The real estate, FMCG, automobile, and consumption sectors have shown strength in the short term. In contrast, the ENERGY, INFRA, and PSU BANKS have reported some weakening. FMCG took the top spot in the 10 day trend followed by AUTOs & REALTY while BANKS, MEDIA and GOLD remained weak.

Rebalance Update for the week !

The WeekendInvesting App

The Weekendinvesting App is a one stop solution for everything about Weekendinvesting and Momentum Investing. This app gives users access to curated market content pieces, insights, performance metrics, momentum watchlists, discounts and many other exciting things. This app acts as a medium for us to provide direct support and resolve your queries.

Please write to [email protected] if you have any questions.