April’s Financial Surge: Nifty Microcap 250 and Nifty Smallcap 250 Experience Over 10% Growth

• Indian markets have shown significant growth in the first month of FY25, with Nifty Microcap 250 and Nifty Smallcap 250 emerging as the best performing indices.
• These indices exhibited impressive growth rates of 10.6% and 10.5% respectively, according to a report by Motilal Oswal Asset Management Company.
• The Nifty Next 50 index also showed consistent growth, indicating a robust start to FY 2025.

Explore the sector-wise performance and global market trends in Indian markets for the month of April 2025.

Impressive Index Performance

The Nifty Microcap 250 Index witnessed a remarkable surge of 10.6% in April, continuing its impressive performance over the last three months, six months, and one year, with growth rates of 2.26%, 29.67%, and 86.82% respectively. Similarly, the Nifty Smallcap 250 Index also showed strong growth, with a 10.5% increase in April and growth rates of 5.11%, 31.68%, and 68.57% over the last three months, six months, and one year. The Nifty Next 50 Index maintained its positive momentum, registering growth rates of 17.36%, 47.44%, and 64.25% during the last three months, six months, and one year respectively.

Top Performing Sectors

The metal sector continued its upward trajectory, emerging as the top performer with a growth rate of 11.1% in April. The realty sector also showed consistent growth, recording an 8.06% increase in April and impressive growth rates of 13.67%, 61.40%, and 118.66% over the last three months, six months, and one year respectively. The energy and auto sectors witnessed growth rates of 3.45% and 4.95% in April, with impressive growth rates of 70.08% and 70.44% over the past year.

Contribution to Nifty 500 Returns

The financial services, consumer discretionary, and commodities sectors were the top three contributors to the overall returns of Nifty 500, resulting in a positive impact of 2.8%. However, the IT sector was the only negative contributor, with a return of -0.5%.

Global Market Trends

In the US, both the S&P 500 and NASDAQ 100 experienced declines of 4.2% and 4.5% respectively in April 2024. Among emerging markets, China led with a growth of 6.6%, while the UK stood as the sole positive performer among developed markets, with a rise of 1.1%.

Key Economic Indicators

Monetary policy actions led to a drop in India’s annual retail inflation, reaching 4.85% in March 2024, the lowest since May 2023. Buoyed by strong expansion in both the manufacturing and services sectors, the composite PMI surged to 62.2 in April 2024, marking its most rapid pace since June 2010. GST revenue collection soared to a historic milestone, surpassing Rs. 2 lakh crores for the first time ever, reaching an impressive Rs. 2,10,267 crores.

Conclusion

Indian markets have started FY25 on a strong note, with significant growth in various indices. The metal and realty sectors have emerged as top performers, contributing to the impressive performance of the Nifty 500. Despite some global market declines, the robust start to FY25 indicates a positive outlook for the Indian market in the coming months.