India’s equity markets ended December on a muted note, but benchmark indices still delivered respectable returns over longer periods, according to the latest Global Market Snapshot by Motilal Oswal Mutual Fund.
The report showed that the Nifty generated an annual return of 10.51 per cent, even as broader markets remained largely range-bound in December. Short-term market movements were mixed, though sectors such as metals and automobiles continued to outperform over longer horizons.
During December, the Nifty slipped marginally by 0.28 per cent. Despite the monthly dip, the index posted gains of 6.17 per cent over the past three months and 2.40 per cent over six months, reflecting underlying resilience.
The Nifty Next 50 fared slightly better on a monthly basis, rising 0.33 per cent in December. However, its longer-term performance remained modest, with returns of 2.24 per cent over three months, 0.53 per cent over six months, and 2.02 per cent on a yearly basis.
Mid-cap stocks showed relative strength. The Nifty Midcap 150 declined 0.53 per cent during the month but delivered gains of 5.89 per cent over three months, 1.31 per cent over six months, and 5.37 per cent over one year.
Small-cap and micro-cap segments continued to face pressure. The Nifty Smallcap 250 fell 0.29 per cent in December and recorded losses of 6.25 per cent over six months and 6.01 per cent over one year. The Nifty Microcap 250 saw a sharper monthly decline of 2.46 per cent and posted nearly 10 per cent losses on an annual basis.
The broader Nifty 500 index slipped 0.26 per cent in December but ended the year with gains of 6.69 per cent. Over the past three and six months, it returned 5.00 per cent and 1.08 per cent, respectively.
On the sectoral front, metal stocks emerged as the top performers, gaining 8.5 per cent in December and delivering a strong 29.11 per cent return over one year. Auto stocks also remained firm, rising 1.49 per cent during the month and posting a solid 23.45 per cent annual gain.
Banking stocks stayed steady, recording yearly gains of over 17 per cent, while IT stocks posted marginal increases. In contrast, consumer durables, healthcare, and real estate stocks declined by around 2 to 3 per cent during the month.
The defence sector fell 3.28 per cent in December but still managed a robust 19.30 per cent gain over one year. Realty stocks continued to underperform, with losses of nearly 17 per cent on an annual basis.
Factor-based performance remained mixed. Value stocks gained 3.1 per cent in December, while momentum stocks declined 3.8 per cent. Commodities, IT, and energy stocks supported the broader market, whereas financials, consumer discretionary, and healthcare stocks weighed on the Nifty 500.
