Nifty sees profit booking after hitting fresh record high
New Delhi:The breadth of the stock market rally is narrowing with the number of stocks generating positive returns coming down. The number of stocks generating positive returns within the Nifty-500 universe has narrowed from 452 in Q1FY24 to 268 in Q4FY24, a report by Motilal Oswal Private Wealth (MOPW) said.
In the last quarter, January-March 2024, about 70 per cent of the large-cap universe generated positive returns as compared to 57 per cent in mid-cap and 45 per cent in small-caps, the report said.
Sector performance is also witnessing rotation. Finance (non-banks), auto, and healthcare which had lagged for most of FY24 have been among the top performers last quarter, while power & infrastructure, which had dominated the rally, have started to lag.
The Nifty surged nearly 11 per cent from December to March, while the median return of the top 250 small-caps was just 3.8 per cent. In fact, 34 per cent of the top-500 companies and 42 per cent of small-caps delivered negative absolute returns during this period.
