The Nifty 50 Index has outperformed global peers so far this year but that masks the volatility in the broader market as small and mid-cap indices have tumbled.
The 50-share benchmark has fallen from its record high of Jan. 29 and just about managed to stay in the green, supported by information technology companies and private lenders. Trade tensions and rising fuel prices have added to volatility, with the rupee faring the worst among Asian peers.
Here’s a snapshot of the market so far this year:
The Nifty 50 Index has gained nearly 1.7 percent so far this year and outperformed most global peers.
The broader market index – the NSE Nifty 500 Index — declined 4 percent. It fell for the first time in five years, led by companies such as Vakrangee Ltd., Bombay Rayon Fashions Ltd. and Kwality Ltd.
Nearly 80 percent of the NSE 500 members have given a negative return.
The Nifty NSE Midcap Index’s negative returns of 14 percent was its steepest decline in a decade.
The Nifty NSE Smallcap Index’s 21 percent drop was the steepest in five years.
Six of the nine sectoral gauges compiled by the National Stock Exchange fell, led by the NSE Nifty PSU Bank Index's 24.6 percent decline. The NSE Nifty IT Index was the top sectoral gainer, up by 19.9 percent.
The NSE Nifty IT Index’s near-20 percent returns is a nine-year high. The benchmark advanced due to strong earnings by major IT firms despite seasonally weak quarters.
The NSE Nifty PSU Bank Index was at the other end of spectrum with negative returns of over 20 percent — a nine-year low. The decline was led by Punjab National Bank after it reported in February fraudulent transactions of over Rs 13,000 crore.
Foreign investors turned sellers in both the equity and debt markets in the first six months of 2018. Overseas investors have siphoned out Rs 40,377 crore from the debt market — the most in a decade.
They’ve also pulled out Rs 5,900.24 crore from equities, which is the most in nine years. The sell-off was primarily due to the escalating trade tensions between the U.S. and China.
Domestic investors have infused Rs 62,618 crore, the highest in over a decade.
Capital raised in initial public offers stands at a 12-year high of over Rs 23,000 crore.
The rupee was the worst performing Asian currency, after depreciating 6.7 percent against the U.S. dollar. The weakness was led by a rise in crude oil prices, a wider current account deficit and foreign fund outflows.
The 10-year bond yield snapped three years of decline and rose 58 basis points, the most since 2009.
(Corrects an earlier version to update year-to-date percentage change of the rupee.)
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