Market Recap: Motilal Oswal says Nifty Microcap 250 expansion 11.56% in June, Nifty 50 up 6.57%

India’s stock markets experienced a strong performance in June, driven mainly by smaller companies. Nifty Microcap 250 and Nifty Smallcap 250 indices were the top performers, registering notable monthly gains of 11.56% and 7.90% respectively, a report by brokerage firm Motilal Oswal said.

The Nifty Microcap 250 index, which tracks the performance of the 250 smallest companies within the Nifty 500 universe, has been performing exceptionally well. Over the last three months, six months and one year, the index has shown an impressive growth rate of 21.51%, 23.48% and 75.24% respectively.

The Nifty Smallcap 250 index, representing the next rung of the market capitalization ladder, has performed strongly with returns of 19.40% in the last 3 months, 21.86% in the last 6 months and 62.28% in the last year.

While smaller companies grabbed the headlines, other market sectors also showed positive performance. Nifty Midcap 50 index gained 7.89% in June, with long term gains of 17.26% in 3 months, 21.99% in 6 months and 55.45% over the last year. Additionally, the Nifty 500 index, which includes the widest range of companies, saw a rise of 6.90% in June, 11.38% in 3 months, 16.11% in 6 months and 37.31% over the last year .

All sectoral indices recorded gains, with the IT sector leading the way with a return of 11.7%, followed by consumer durables with a return of 9.19%. Realty and auto sectors also witnessed positive growth with growth of 8.37% and 7.60% respectively. Notably, the realty sector has grown by 112.45% during the last year.

The energy sector grew by 3.81% in June. There is a significant increase of 69.21% compared to last year. The banking and healthcare sectors recorded similar growth rates of 6.86% and 6.62% respectively in June. In contrast, the metals sector struggled and registered a marginal growth of 0.93% in the month.

Every sector in the Nifty 500 contributed positively, with financial services, consumer discretionary and IT leading the way, which collectively contributed 4.3% to its overall gain.