Nifty Ended Its Five-month Winning Streak in August

Nifty ended its five-month winning streak in August'23. After scaling new highs in July, the benchmark saw some profit booking and consolidation in August, says a report by Motilal Oswal Financial Services.

The index oscillated 572 points before closing 500 points (or 2.5 per cent MoM) lower at 19,254. The Nifty is up 6.3 per cent in CY23YTD.

Mid-caps/Small-caps outperformed large-caps by 6.2 per cent / 7.1 per cent in August. Similarly, mid-caps/small-caps have outperformed large-caps and have risen 24 per cent / 26 per cent vs. 6 per cent rise for the Nifty in CY23YTD, the report said.

DIIs recorded notable inflows of USD3bn in August after remaining muted for the last four months. Net inflows stood at USD13.2bn in CY23YTD. FIIs remained net buyers for the sixth straight month at USD1.7bn in August; YTD inflows stood at USD17bn.

All major sectors ended lower in August. Media (+11 per cent ), Technology (+4 per cent ), Telecom (+3 per cent ), Capital Goods (+3 per cent ), and Healthcare (+1 per cent ) were the only gainers. While, Oil & Gas (-4 per cent ), PSU Banks (-3 per cent ), Consumer (-3 per cent ), Infrastructure (-3 per cent ), and Private Banks (-2 per cent) were the key laggards, the report said.

Barring Russia (+5 per cent ) and Indonesia (flat), August’23 saw key global markets such as MSCI EM (-6 per cent ), China (-5 per cent ), Brazil (-5 per cent), the UK (-3 per cent ), Taiwan (-3 per cent ), Korea (-3 per cent ), India (-3 per cent ), the US (- 2 per cent ), and Japan (-2 per cent ) decline in local currency terms. Over the last 12 months, the MSCI India index (+5 per cent ) has outperformed the MSCI EM index (-1 per cent ). Over the last 10 years, the former has outperformed the MSCI EM index by 195 per cent, the report said.