Midcaps gained 1.72% and Smallcaps gained 2.52% in August, reflecting strength beyond large caps: Motilal Oswal Mutual Fund
According to Motilal Oswal Mutual Fund's Global Market Snapshot report, the Nifty Microcap 250 gained 5.41% in August, recording the highest monthly gain among the indices. The Nifty Smallcap 250 rose 2.52% over the month, while the Nifty Midcap 150 gained 1.72%. The Nifty Next 50 increased 0.15%, while the Nifty 500 declined 0.04%. The Nifty 50 recorded a decline of 1.24% over the month. Overall, the indices covered in the snapshot recorded mixed returns over the one-month period ending August 31, 2026.
Nifty 50 declined 1.24% in August, while broader indices stayed positive. Midcaps gained 1.72% and Smallcaps gained 2.52%, reflecting strength beyond large caps.
Among sectors, Defence emerged as the strongest-performing sector in August, gaining 4.15% over the month. Metal and Bank also recorded gains of 3.73% and 1.33%, respectively, followed by Healthcare, which rose 1.11%. Consumer Durables gained 0.90%, while Auto and Realty increased 0.34% and 0.30%, respectively. IT recorded a gain of 1.57%. On the other hand, FMCG declined 6.30%, while Energy fell 2.01%. Overall, seven of the ten sectors recorded positive returns in August, with Defence leading the gains and FMCG posting the steepest decline.
Momentum led the factor indices in August, gaining 4.97% over the month, while Quality posted a marginal decline of 0.83%. Low Volatility declined 2.77%, while Enhanced Value ended lower, declining 1.63% in August. Overall, factor indices showed mixed trends during the month, with Momentum recording the strongest gain, while Low Volatility posted the largest decline.
Nifty 500 posted a marginal decline of -0.04%, with gains in Industrials, Consumer Discretionary and Healthcare offset by weakness in FMCG, Utilities and Telecommunication.
Global Market Update
US equities gained in August. The S&P 500 rose 2.62%, while the Nasdaq 100 and Dow Jones Industrial Average gained 4.18% and 1.34%, respectively. Over the past year, the Nasdaq 100 delivered the strongest gain of 25.80%, followed by the S&P 500 at 18.98% and the Dow Jones Industrial Average at 16.78%.
Information Technology contributed 2.31% to the index return, while Industrials and Utilities sectors also contributed positively.
In emerging markets, South Africa led the gains, rising 11.00%, followed by Taiwan and Korea, which gained 6.34% and 5.82%, respectively, while Brazil declined by 2.18%. In developed markets, Germany and Japan gained 3.93% and 3.33%, respectively, while France declined 1.04%. Overall, emerging markets showed a broad-based positive trend, while developed markets remained mixed during the month.
Crude oil rose modestly by 1.29% over the month to $85.76 a barrel. Gold, on the other hand, surged 13.32% to $4,562 an ounce, while the Indian rupee remained largely steady against the US dollar, with USD/INR moving -0.24% during the month. Meanwhile, crypto markets moved higher, with Ethereum gaining 31.02% and Bitcoin rising 22.18% over the month, although both remained lower over the preceding one-year period.
Quick Take
India: CPI inflation edged up to 4.45% from 4.30%, while the repo rate held steady at 5.25% and the 10 year yield rose slightly to 6.95%.
FII inflows stood at ?25,492 crore during the month, while DII equity inflows remained strong at ?62,125 crore, reflecting continued participation from domestic investors in equities. In contrast, DII debt investments recorded outflows of ?53,749 crore during the month.
United States CPI inflation fell to 3.40% from 3.50%, even as the Fed kept rates unchanged at 3.75%.
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