Despite January’s rollercoaster ride in stock markets, midcap indices delivered the strongest annual returns, with Nifty Midcap 150 leading at 8.26%. The index dropped 3.53% for the month, reflecting short-term pressures after a 2.52% three-month decline and 0.61% six-month uptick.
Nifty 500’s performance hinged entirely on commodities, where metals and defense gained around 6%. This offset heavy losses elsewhere: FMCG tumbled up to 11%, realty and consumer durables 6-11%. Nifty 50 lost 3.10% monthly but rose 7.71% yearly; Nifty 500 held steady with 6.94% annual growth.
Smaller stocks lagged: Nifty Smallcap 250 fell 5.52%, Microcap 250 5.66%. Value factor excelled, up 2.4% in January and 25% over the year, surpassing momentum, low-vol, and quality plays.
Asset classes sparkled too—silver’s 43.34% monthly and 226.50% annual returns outpaced gold’s 14.06% and 77.16%. Inflation eased to 1.33% CPI, bond yields hit 6.70%, but policy rates stayed put.
India’s economy showed vigor: PMI steady at 59.5, GST collections soared to 1.93 lakh crore. Investors eyeing long-term trends may find midcaps and value stocks compelling amid volatility.