Nifty Midcap 150 and Nifty 50 Lead October Market Rally
Nifty Midcap 150 and Nifty 50 emerged as the top performers across all market segments in October, delivering impressive gains of 4.79% and 4.51% respectively according to a Motilal Oswal Mutual Fund report.
Key Takeaways
- All market cap segments posted positive returns with Nifty 500 climbing 4.29%
- Realty sector led with 9.2% gains on sustained housing demand
- Banking stocks showed strong momentum with 5.75% monthly growth
Market Segment Performance
All market capitalization segments including large, mid, small and microcaps delivered positive returns during October. The Nifty 500 index climbed 4.29% while Nifty Next 50 rose 2.92%. Nifty Microcap 250 and Nifty Smallcap 250 surged 3.93% and 3.72% respectively.
Sectoral Performance Highlights
Realty sector led the gains with a 9.2% increase driven by sustained housing demand. All sectors delivered positive returns during the month.
The fund house stated: “The midcap benchmark, namely the Nifty Midcap 150 has shown growth of 3.21 per cent, 10.93 per cent & 5.60 per cent in last 3 months, 6 months, and 1 year.”
Longer Term Performance
The large cap benchmark Nifty 50 surged 3.85%, 5.70% and 6.27% across 3-month, 6-month and 1-year periods respectively. The broader Nifty 500 index rose 3.47%, 7.63%, and 4.50% over the same timeframes.
Sector-Specific Trends
IT index gained 6.11% in October but remains down over 11% year-on-year. Banking stocks continued their strong performance with the Bank Index rising 5.75% during the month and posting 3.24%, 4.88%, and 12.24% growth across 3-month, 6-month, and 1-year periods.
Defence sector maintained its strong long-term trajectory, rising 3.63% in October. The sector delivered impressive gains of 4.61%, 14.12%, and 28.17% over the specified time periods.
Economic Context
The fund house noted that inflation eased sharply, supporting the RBI’s decision to maintain its current policy stance. Meanwhile, GST collections remained robust, indicating resilient domestic economic activity.
