Nifty Next 50 beats other large, mid, small caps in May, Nifty 50 lags broad markets; some global indices soar

Nifty Next 50 beats other large, mid, small caps in May, Nifty 50 lags broad markets; some global indices soar

In May, despite inching towards new record levels, headline Nifty 50 index failed to keep pace with the broader market performance, particularly when compared to the Nifty Next 50 index. A recent report by Motilal Oswal highlighted that the Nifty Junior, or Nifty Next 50 index, witnessed a rise of 6.42% in May, extending its winning streak for the third consecutive month. Over the span of three months, the index jumped 12.88%.Index31-May-231 Month3 Month6 Month1 YearNifty 5018,534.402.60%7.11%-1.19%11.76%Nifty Next 5042,049.306.42%12.88%-3.75%7.87%Nifty Midcap 15012,623.355.69%10.62%4.38%18.91%Nifty Smallcap 2509,913.405.54%11.09%2.72%14.30%Nifty 50015,766.403.59%8.59%-1.13%11.66%Index performance

The Nifty Midcap 150 emerged as a strong performer, a close second to Nifty Junior, clocking a monthly gain of 5.69% and a three-month gain of 10.62%. The benchmark Nifty 50, in comparison, was the slowest moving among the indices, gaining 2.60% in May. Over the course of three months, the Nifty Smallcap 250 also exhibited substantial gains, growing 11.09%, surpassing the midcap, smallcap, and Nifty Next 50 indices. In comparison, the Nifty 500 index trailed behind with a gain of 8.59% during the same period.

Index31-May-231 Month3 Month6 Month1 YearAuto14,199.007.66%11.52%7.31%22.55%Bank44,128.152.07%9.58%2.08%24.35%Consumer Durables26,083.757.45%8.78%-1.62%5.26%Energy23,875.550.59%10.12%-12.72%-6.89%FMCG51,042.756.75%13.58%12.09%31.85%Healthcare8,210.602.46%9.50%-2.02%5.16%IT29,319.755.82%-1.16%-3.53%-1.21%Metal5,890.051.56%11.78%-10.27%10.45%Realty478.87.57%21.77%6.36%16.30%Sectoral performance

The rise in the Nifty 500 index was largely driven by the Consumer Discretionary and Financial Services sectors, which contributed nearly half of the overall returns in the index. Apart from Utilities, all other sectors made positive contributions to the market’s upward movement, with Bank Nifty adding 24.35% in a year.

Global Markets in May 2023

Despite concerns of bank runs, tech layoffs, and an impending recession, the Nasdaq 100 demonstrated resilience and in May, the index soared by 7.6%. On a year-to-date basis, it surged by a staggering 30%. In comparison, the broader S&P 500 experienced a 0.2% increase, while the Dow declined 3.5% in the month. The sectors that outperformed in April, Healthcare and Financial Services, failed to contribute positively to the returns in the S&P 500 for May. Instead, the IT sector contributed to the gains.

“Developed markets had a slippery slope falling by 4.6% which was led by a recession in Germany that impacted most of the countries in Europe. Emerging markets also fell by 0.4% led by South Africa & China that fell the most,” added the report.