Small & Midcaps Outperform Nifty in 2023

Mid and small caps outperformed largecaps and have risen 36 per cent and 46 per cent, respectively, versus the 11 per cent rise for the Nifty in calendar year 2023, as per a report by Motilal Oswal Financial Services.

Midcaps/Smallcaps outperformed largecaps by 4.9 per cent/6.5 per cent in Nov'23.

The Nifty, after consolidating in Oct'23, bounced back in Nov'23 with a 5.5 per cent MoM gain. Notably, the index was extremely volatile and swung around 1,185 points before closing 1,054 points higher. The Nifty is up 11.2 per cent in CY23YTD, the report said.

The global and domestic markets made a smart comeback as investors remained convinced that the US Federal Reserve was done with its rate-hike cycle, coupled with strong institution flows FIIs turned buyers of $2.3b in Nov'23 after remaining net sellers for two months.

DIIs recorded inflows of $1.7b in Nov'23 after $3.4b of inflows in Oct'23.

FII and DII flows stand at $14.4b and $20.8b, respectively, in CY23YTD.

Barring Russia (down 1 per cent MoM), Nov'23 saw key global markets such as Brazil (+13 per cent), Korea (+11 per cent), Taiwan (+9 per cent), the US (+9 per cent), Japan (+9 per cent), MSCI EM (+8 per cent), India (+6 per cent), Indonesia (+5 per cent), the UK (+2 per cent), and China (+0.4 per cent) close higher in local currency terms.

Over the last 12 months, the MSCI India Index (+7 per cent) has outperformed the MSCI EM Index (+2 per cent). Over the last 10 years, the MSCI India Index has notably outperformed the MSCI EM index by 192 per cent, the report said.