The Nifty index showed a robust annual return of 10.51%, while broader markets remained mostly unchanged in December, as per a report by Motilal Oswal Mutual Fund. Despite a slight dip of 0.28% in December, the Nifty gained 6.17% over three months and 2.40% over six months. The Nifty Next 50 index performed slightly better, rising by 0.33% in December and delivering returns of 2.24% over three months.
The Nifty Midcap 150 index saw a decline of 0.53% in December but managed gains of 5.89% over three months and 1.31% over six months. Conversely, small-cap stocks faced pressure, with the Nifty Smallcap 250 falling by 0.29% in December and posting negative returns of 6.25% over six months and 6.01% over one year. The Nifty Microcap 250 witnessed a sharper decline of 2.46% in December, resulting in losses of nearly 10% annually.
In sector performance, metal stocks emerged as top gainers with an 8.5% increase in December and strong returns of 29.11% over the year. Auto stocks also did well, rising by 1.49% in December and achieving an annual return of 23.45%. Banking stocks remained stable with gains exceeding 17% annually, while IT stocks saw marginal increases. On the other hand, consumer durables, healthcare, and real estate sectors experienced declines of around 2 to 3% in December.
The defense sector dropped by 3.28% in December but still recorded a solid annual gain of 19.30%. Realty sector remained under pressure, declining by almost 17% over the year. Factor-based performance varied, with value stocks gaining 3.1% in December, while momentum stocks fell by 3.8%. Commodities, IT, and energy sectors supported the market, while financials, consumer discretionary, and healthcare sectors dragged the Nifty 500 down.
