The latest report by Tata Mutual Fund shows that mid-cap and small cap indices continue to outperform the large cap index over both the one month and one year periods. The report also highlighted the highest gains in the realty sector (108%) and PSU banks (57%), while banks lagged behind with just a 13% gain.
In January 2024, the Indian benchmark equity indices experienced a downturn after a two-month gaining streak. This was attributed to mixed corporate earnings results, profit booking, and reduced expectations of rate cuts by the US Federal Reserve. The Nifty remained flat for the month, closing 6 points lower after swinging around 860 points due to extreme volatility. However, most major sectors saw gains, with the exception of media, private banks, banks, financial services, and FMCG.
Foreign institutional flows (FIIs) were negative in January 2024, while domestic institutional investors (DIIs) continued to show healthy inflows for the sixth consecutive month. The report also noted that for the financial year 2023, FIIs were net sellers with outflows of close to $10 billion, whereas DIIs saw robust inflows of $33 billion.
Looking at the current financial year 2024, the report revealed that FII flows stand at $18.3 billion, while DII flows amount to $15.4 billion. This data indicates continued strong interest from domestic investors despite the challenges faced by the market.
Overall, the report provides valuable insights into the performance of different sectors and the trends in institutional investment, offering a comprehensive overview of the current state of the Indian equity market.
–IANS
biz/san/uk
