By Admin 
The month of May was very strong for the Indian stock market. Especially defense and microcap stocks made tremendous earnings. The attitude of the investors is now seen to be completely turned towards taking the risk. At the same time, the beginning of June was even more exciting, when the Reserve Bank of India (RBI) cut the interest rate more than expected, which increased the real estate and other rate-sensitive sectors and accelerated.
Nifty 50 also showed power
According to the report of Motilal Oswal, the Nifty 50 in May recorded a 1.71 per cent gains, while the Nifty 500 made a jump of 3.50 per cent. But MicroP investors Nifty Microcap 250 index made a bang of 12.10 per cent.
Apart from this, 9.59 per cent in Nifty Smallcap 250 and 6.30 per cent in midcap 150. Large stocks i.e. large caps looked slightly restrained, NIFTY Next 50 increased by just 3.49 percent.
Defense stocks showed the biggest jump
Defense sector was the biggest hero of the month of May. Defense stocks saw a rise of 21.84 per cent in the strong line of government order, ‘Make in India’ and due to the huge interest of investors. In the last one year, this sector has given a return of 30.78 percent, which is the highest from any sector.
FMCG and utility sector slipped
While almost all the other sectors performed well, the FMCG and Utility sectors were left behind. FMCG recorded a decline of -0.09 per cent and utilities -0.04 per cent.
Factor based strategy also shines
The Momentum Index showed 5.40 per cent, Quality Index 4.82 per cent and ENHANCED VALUE index 4.20 per cent. Low Volatilic Index also climbed 1.39 per cent, which makes it clear that investors are now fundamentally strong and trending stocks.
New life in June from RBI’s policy
On June 6, when the RBI suddenly relaxed a 50 -base point repo rate cut and the cash reserve ratio (CRR), the investors got new life. The realty index made about 5 percent jump on the same day. This not only gave the support of liquidity to the market, but also opened the way for credit growth. As a result, both Nifty 50 and Sensex ended the week with a decline of 1 per cent and 0.90 per cent after two weeks.
Support also received from foreign markets
In May, American markets also encouraged investors. 9.04 per cent in Nasdaq 100, 6.15 per cent in S&P 500 and Dow Jones showed an increase of 3.94 per cent. Countries like Taiwan and South Korea were seen leading emerging markets in Asia. At the same time, gold declined by 0.74 percent as the appetite to take risk increased.
Now that the Nifty 50 has climbed for the third consecutive month and is also getting positive signals from institutions like RBI, investors are now looking at June-July macro data and corporate results. This will decide how durable these boom is.
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Also read: Paras stone of defense sector, brokerage firm Jefferies said price can go up to Rs 7500