Mumbai— India’s broader equity markets delivered a strong performance in May, with micro- and small-cap stocks leading the charge. According to Motilal Oswal Asset Management Company’s latest Global Market Snapshot report, the Nifty Microcap 250 index jumped 12.10% during the month, while the Nifty Smallcap 250 posted a solid 9.59% gain.
The rally was driven by consistent investor interest in smaller companies, reflecting growing confidence in India’s domestic economic outlook. Over the past year, the Nifty Microcap 250 has climbed 13.74%, and the Smallcap 250 has advanced 7.72%.
Large-cap and mid-cap indices also ended May in positive territory. The benchmark Nifty 50 rose 1.71%, while the Nifty Next 50 gained 3.49% and the Nifty Midcap 150 grew by 6.30%. The broader Nifty 500 index was up 3.50%, bolstered by strong performances in industrials, consumer discretionary, and financial services.
The defense sector stood out as the top performer, soaring 21.84% in May and marking a 30.78% gain over the past year.
Most sectors showed positive momentum during the month, with the exceptions of FMCG and utilities, which dipped slightly by 0.09% and 0.04%, respectively.
Factor-based strategies also delivered healthy returns. Momentum and quality indices rose by 5.40% and 4.82%, while enhanced value and low volatility strategies gained 4.20% and 1.39%, respectively.
In the commodities market, gold declined by 0.74% in May, as easing geopolitical tensions—particularly between the U.S. and China—dampened demand for the metal as a safe-haven asset.
The report highlights growing investor confidence across market segments, with strong participation in mid-, small-, and micro-cap stocks. Analysts attribute this optimism to a combination of favorable domestic fundamentals, sector-specific tailwinds, and supportive global cues. (Source: IANS)
