New Delhi, April 24 (IANS) The breadth of the stock market rally is narrowing with the number of stocks generating positive returns coming down.
The number of stocks generating positive returns within the Nifty500 universe has narrowed from 452 in Q1FY24 to 268 in Q4FY24, a report by Motilal Oswal Private Wealth (MOPW) said.
In the last quarter, January-March 2024, 70 per cent of the large-cap universe generated positive returns as compared to 57 per cent in midcap and 45 per cent in small caps, the report said.
Sector performance is also witnessing rotation. Finance (non-Banks), Auto, and Healthcare which had lagged for most of FY24 have been among the top performers last quarter, while Power & Infrastructure, which had dominated the rally, have started to lag.
The Nifty surged nearly 11 per cent from December to March, while the median return of the top 250 small caps was just 3.8 per cent. In fact, 34 per cent of the top 500 companies and 42 per cent of small caps delivered negative absolute returns during this period.
“This disconnect between the Nifty and broader markets could be attributed to factors such as attractive relative valuations of large caps post the small and mid-cap rally, regulatory concerns over potential overheating, and resumption of FII flows which favour large caps,” the report said.
Over the last five years, India’s capital markets have witnessed vibrant participation from domestic retail savers, with Demat accounts surging to 151 million in March 2024 from 36 million in March 2019. India Inc. has raised $92.9 billion through primary markets during this period.
Expectations of political continuity augur well for market sentiment. Corporate earnings growth may witness moderation relative to the pace witnessed over the last few years but is expected to remain steady given the robust health of India Inc. balance sheets and the ongoing capex cycle, the report added.
–IANS
biz/san/uk
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by TodayIndia.news and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of TodayIndia.news We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, TodayIndia.news takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
