Midcap, smallcap stocks lead April rally

Mumbai

Indian stock markets ended April with strong gains, led by midcap and smallcap stocks. The Nifty Midcap index rose by 3.94%, while the Nifty Smallcap index increased by 1.69%, according to a report from Motilal Oswal Asset Management Company. This shows rising investor confidence in these segments, driven by optimism in the broader market.

The benchmark Nifty index also posted solid growth, climbing 3.46% in April. The Nifty Next 50 rose by 2.32%, while the Nifty 500 index advanced 3.24%. Gains were supported by strong performance in financial services, energy, and consumer-related sectors. Microcap stocks also saw an increase, with the Nifty Microcap 250 rising by 1.28%.

A standout performer was the defence sector, which surged 11.49% during April and recorded an impressive 32.03% gain over the past year. This growth is linked to the Indian government's push for self-reliance and consistent investment in defence.

Meanwhile, the IT sector dipped slightly by 0.27%, and commodities fell 0.07% due to global market uncertainties. Factor-based indices like momentum and quality continued to perform steadily, while value-based and low-volatility indices also showed gains. Government bonds were stable, with modest returns on 5-year and 10-year securities.

Globally, US markets were mixed. The S&P 500 fell 0.21% due to energy and healthcare losses, though IT and consumer staples gained. The Nasdaq 100 rose 1.5%, but the Dow Jones declined by 2.2%.

Overall, April was a strong month for Indian equities, especially in the midcap and defence sectors.