Equity markets tread K-shaped path, India's mcap to touch Rs 380 trn

The equity markets exhibited a K-shaped trajectory in January. The stocks that posted weak numbers bore the brunt, while those registering robust numbers or seen benefiting from the Union Budget were lapped up by investors. Overall, the bluechip-focused Sensex and Nifty indices consolidated after rallying sharply during the preceding two months. 

Meanwhile, the broader markets showed no signs of cooling off despite concerns about frothy valuations. 

Nifty Media and Private Bank indices saw the maximum decline —mainly on account of losses in Zee Entertainment (worst-performing stock among Nifty50) and HDFC Bank (worst-performing stock in the Nifty 50 index). 

Thanks to the rally in small and midcaps, India’s market capitalisation grew by Rs 15.5 trillion to touch Rs 380 trillion. It also became the fourth-largest market globally, overtaking Hong Kong. Overseas funds pulled out over Rs 27,000 crore, while mutual funds provided buying support to the tune of Rs 20,000 crore.