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• Nifty 50 declined by 0.58% in January
• Nifty 500 declined by 3.55%  in January
• Nifty Next 50 decline by 7.15% in January
• Nifty Midcap 150 saw a decline by 6.10% January

According to Motilal Oswal Asset Management Company’s Global Market snapshot report, Based on the current data as of January 31, 2025, all broad-based indices are showing negative returns in the short term but remain positive over the one-year period.  The Nifty Smallcap 250 declined significantly over the last 3 months, and 11.68% over 6 months, though it maintained a positive return of 5.23% over the year. The Nifty Microcap 250 showed similar decline, falling by 8.53% over 3 months, and 8.40% over 6 months, while maintaining a 10.89% gain over the year. The Nifty 50 demonstrated relatively better resilience with smaller declines of 2.88% over 3 months, and 5.78% over 6 months, while posting an 8.21% gain over the one-year period.

The Nifty 500 has experienced a decline of 4.89% over the past 3 months, with a negative 8.29% change over the past 6 months, though it maintains a positive one-year growth of 8.98%.

The Nifty Next 50 has shown a significant decline of 9.70% over the past 3 months, with a negative 15.59% change over the past 6 months, while maintaining a positive 14.16% return over the past year.

The Nifty Midcap 150 has experienced a decline of 4.91% over the past 3 months, with a negative 9.19% change over the past 6 months, though it still shows a positive 10.99% increase over the past year.

The Auto sector shows a slight gain of 0.15% over the past month, despite facing a 14.31% six-month decline, while maintaining 18.93% yearly return. The Defence sector has experienced recent headwinds of 1.54% monthly decline and a 16.24% six-month drop although showing a yearly return of 48.33%. The Realty sector has been recording steep declines of 12.45% monthly and 15.76% over six months, though still managing a positive 7.61% yearly return. Meanwhile, the Energy sector shows a fall of 3.67% monthly, 13.76% quarterly, 23.12% over six months.

Momentum strategy experienced the steepest declines, dropping 13.07% monthly and 22.14% over six months, with a 1.39% yearly loss. Low Volatility proved relatively resilient with the smallest monthly decline of 0.63%, while Quality and Enhanced Value strategies maintained positive yearly returns of 6.91% and 5.88% respectively, despite facing significant six-month drawdowns exceeding 16%.

The Nifty 500 Index declined by 3.55% in January 2025, reflecting market adjustments with declines across multiple sectors.

Global Market Update

In U.S.,the S&P 500 Index increased by 2.70%, supported by gains in multiple sectors, with major indices showing positive momentum.

* Financials (+0.87%) and Communication Services (+0.84%) were the leading contributors, while Information Technology was the only sector with a downturn of 0.95%.

* Gold (+7.78%) and Silver (+9.34%) saw price increases, while Crude oil rose by 1.13% and the USD/INR exchange rate moved up 1.17%.

* Bitcoin gained 12.58%, while Ethereum declined by 3.40%, reflecting a mixed trend in digital assets

Quick Take

* CPI inflation in India moderated to 5.22% down from 5.48% in the previous month, while the PMI composite stood at 57.90, reflecting changes in business activity.

* India’s GST collections rose to ?1.95 lakh crore, indicating higher tax revenue, while US tax receipts were recorded at $454 billion, showing fiscal consistency.

* FIIs recorded net outflows of ?77,211 crore, whereas DIIs saw net inflows of ?5,758 crore, indicating shifts in investment trends.

* US CPI inflation increased to 2.90%, while unemployment remained steady at 4.10%, suggesting stability in labor market conditions despite inflationary pressures.

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