January brought turbulence to Indian equity markets, yet commodities stood as the lone pillar supporting the Nifty 500 index. While most sectors faltered, midcap shares claimed the crown for best annual performance.
The Nifty Midcap 150 shed 3.53% last month but boasted an 8.26% one-year return, the highest among major indices. Over three months, it fell 2.52%, with a slim 0.61% rise in six months. Nifty 50 declined 3.10% monthly but gained 7.71% annually, while Nifty 500 was flat with 6.94% yearly growth.
Sector-wise, metals and defense rallied about 6%, contrasting sharp drops in FMCG (up to 11%), realty, and consumer durables (6-11%). Smallcaps suffered more, with Nifty Smallcap 250 down 5.52% and Microcap 250 falling 5.66%.
Factor investing highlighted value’s dominance: up 2.4% in January and 25% yearly, beating others. In assets, silver led spectacularly at 43.34% monthly and 226.50% annual returns; gold followed at 14.06% and 77.16%.
Macro data offered reassurance. CPI inflation ticked to 1.33%, bond yields climbed to 6.70% without policy rate changes. Strong GDP signals persisted via PMI at 59.5 and record GST at 1.93 lakh crore.
This mixed bag suggests selective opportunities, with midcaps and commodities poised for attention amid broader caution.