April Series: Nifty50 likely to surge, broader markets may outperform, trend shows - Pharma, Metal top picks
The broader markets have outperformed the benchmarks during April Series, as Nifty Midcap grew by 5.4 per cent and small-cap 6 per cent on an average of 5 years, the report noted.
In four of five times, the Indian market in April Series has reported positive returns, a Zee Business research report said. Nifty50 on average has registered a growth of nearly 5 per cent in the last five years between 2017-and 2021, it added.
In 2021, the benchmark index declined marginally by 0.4 per cent during April Series, while in the other four years it has given positive returns. The index grew by 1.4 per cent in 2017, 6.2 per cent in 2018, over 1 per cent in 2019, and almost 15 per cent in 2020, according to the research report.
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The broader markets have outperformed the benchmarks during April Series, as Nifty Midcap grew by 5.4 per cent and small-cap 6 per cent on an average of 5 years, the report noted.
In 2019, both mid and small-cap reported negative growth between 3-4 per cent during April Series, while they have jumped in all other years. The outperformance of Nifty midcap had already begun, Zee Business analyst said, on the first day of series, as it closed around 1.5 per cent against a 1 per cent gain in Nifty50.
Sectorally, pharma, and metal witnessed a buying interest four of five times during the April series as compared to Bank, IT and Realty, which portrays volatility, the report pointed out, advising investors to be cautious with these three sectors.
Both indices pharma and metal had reported negative returns in April series of 2017, each down by 3 and 4 per cent. Last year, the metal registered a growth of around 22 per cent and pharma around 10 per cent, the research report noted.
Pharma grew by 8.4 per cent in 2018, 0.6 per cent in 2019, and 30 per cent in 2020; while metal surged by 7.5 per cent in 2018, 1.5 per cent in 2019, and 17.3 per cent in 2020.
Historically, April remains one of the best months for the Indian equity market where Midcap and Smallcap tend to outperform and we have seen a trailer on Friday, Parth Nyati, Founder, Tradingo said.
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