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

India's stock markets experienced a robust performance in June, driven primarily by smaller companies. A report by brokerage firm Motilal Oswal highlighted that the Nifty Microcap 250 and Nifty Smallcap 250 indexes were the top performers, achieving remarkable monthly growth of 11.56% and 7.90%, respectively.

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

The Nifty Smallcap 250 index, representing the next tier up the market capitalization ladder, has demonstrated strong performance, with returns of 19.40% over the last 3 months, 21.86% over the last 6 months, and 62.28% over the past year.

While smaller companies have taken the spotlight, other market segments have also shown positive performance. The Nifty Midcap 50 index grew by 7.89% in June, with longer-term gains of 17.26% over 3 months, 21.99% over 6 months, and 55.45% over the past year. Additionally, the Nifty 500 index, which includes the broadest range of companies, saw growth of 6.90% in June, with gains of 11.38% over 3 months, 16.11% over 6 months, and 37.31% over the past year.

All sectoral indices registered gains, with the IT sector leading the rebound with a return of 11.7%, followed by consumer durables at 9.19%.

The realty and auto sectors also showed positive growth, with increases of 8.37% and 7.60%, respectively. Notably, the realty sector has surged by 112.45% over the past year.

In June, the energy sector expanded by 3.81%. Over the last year, it has grown significantly by 69.21%. Banking and healthcare sectors recorded similar growth rates of 6.86% and 6.62% in June, respectively. In contrast, the metal sector struggled, posting a modest growth of 0.93% for the month.

“During the volatile election month, the Low Volatility factor stood out as the best performer, rising by 6.6% followed by Quality factor at 4.12% Momentum & Enhanced value factor have however seen a similar growth of 3.33% & 3.10%,” Motilal Oswal report said.

Every sector in the Nifty 500 made positive contributions, with Financial Services, Consumer Discretionary, and IT leading the pack, collectively contributing 4.3% to its overall gains.