After three consecutive months of gains, the Indian market slipped into the red zone in September as valuations concerns, the resurgence of COVID-19 cases and geopolitical tensions kept investors iffy.
For September, headline index Nifty and Sensex fell 1.23 percent and 1.45 percent respectively. The expiry week was especially brutal as Nifty dropped over 800 points crashing to crucial support levels of around 10,800 mark. In comparison, the broader markets remained resilient with the Nifty Midcap index rising 1.74 percent and the Nifty Smallcap index jumping 4.19 percent during September.
The strong showing by small and midcap counters helped 63 percent of Portfolio Management Schemes (PMSes) generate positive returns in the month.
As many as 131 PMS schemes outperformed Nifty during September, data collated by PMSBazaar.com, an online portal used for PMS comparison, showed.
Moneylife's MAS Growth topped the list with a whopping 14 percent return during September. Other top performing schemes included Tamohara Investment Managers' TLES (8.04 percent), AccuraCap's Pico Power (7.71 percent) and Nine Rivers Capital's Aurum Small Cap Opportunities ( 6.8 percent). The top ten schemes were from the mid, small and multicap space.
While the stock holding of Moneylife's MAS Growth was undisclosed, Hero Motocorp, Astrazeneca Pharma, Bajaj Finance, Infosys and Dr Reddy's Laboratories were some of the top holdings of Tamohara Investment Managers' TLES.
Reliance Industries, HCL Technologies, Muthoot Finance, Tata Consultancy Services and Alkem Laboratories were the top picks of AccuraCap's Pico Power.
Of the 167 strategies PMSBazaar.com looked at, 60 schemes generated negative returns during the month while one scheme remained flat.
Experts are of the view that the rise in liquidity and general underperformance compared to frontliners in the last two years is leading to a rally in the broader markets. However, investors should still be careful while picking stocks from this space.
“Liquidity indeed is a cause of volume in this segment, however, it seems that investors feel this segment to be relatively undervalued and are expecting good returns with the recovering and rising Nifty,” Gaurav Garg, Head of Research at CapitalVia Global Research Limited told Moneycontrol.
“Unlock 5 is expected to further normalize the business as this was the segment hard hit during the lockdown and following few months,” he said.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.