Broader Indian equity indices performed well in June, with smallcap and microcap indices showing gains of 4.29% and 6.35% respectively, as per a report by Motilal Oswal Mutual Fund. The Nifty Midcap 150 rose by 0.90% during the month and posted a 17.21% increase over three months.
The Nifty Smallcap 250 saw a 4.29% increase in June, while the Nifty Microcap 250 surged by 6.35%. Over three months, the Nifty Smallcap 250 and Nifty Microcap 250 recorded returns of 24.02% and 33.09% respectively.
In contrast, the Nifty 50 gained 1.35% in June and 6.87% over three months but experienced a 6.47% decline over one year. Sectors like banking and real estate witnessed gains of over 6%, while IT and Metal sectors faced declines of 9.56% and 6.86% in June.
IT and Metals showed the poorest performance over the year, with returns of -32.48% and -15.91% respectively. Meanwhile, Metal sector returns exceeded 31% over the year, healthcare posted 11.59%, auto 10.92%, and defence 7.32%. However, the IT sector saw a consistent decline of 32.48% over the past year.
The report highlighted a momentum-driven market for factor indices, with Momentum leading at a 1.65% gain, Low Volatility rising by 0.94%, Quality declining by 2.02%, and Enhanced Value dropping by -2.43%. Nifty 500 saw a 1.49% increase in June, primarily boosted by financial services, consumer discretionary, and healthcare sectors.
Foreign Institutional Investor (FII) inflows reached Rs 4,669 crore for the month, while Domestic Institutional Investor (DII) flows were negative at Rs 36,553 crore, indicating a relatively cautious stance.
