According to reports from Business Standard, Indian equity markets have demonstrated mixed performance in August over the past decade. The Sensex has ended August higher in 6 out of the last 11 years, delivering an average gain of 3.42%, while closing in the red on 5 occasions with an average decline of 2.71%. Similarly, the Nifty 50 has posted positive returns in 6 years with an average gain of 3.46%, compared to negative returns in 5 years with an average loss of 2.58%. Notably, both indices ended August with losses in 2023 and 2025, declining by 2.55% and 1.69% respectively. Latest data from The Economic Times shows that over the past 10 years, Nifty 50 and Nifty 500 have risen in six instances, with average gains of 1.4% and 1.7% respectively. The Nifty Midcap 100 and Nifty Smallcap 250 also advanced on seven and six occasions respectively over this period, indicating broad-based market strength.
As reported by The Economic Times, Indian equity markets are positioned positively as July concludes with significant foreign investor support. The Nifty climbed 0.3% to end July at 24,383, with the NSE benchmark ending the month 2.2% higher. Foreign institutional investors have turned positive, marking their first net purchases since February, with net buying over ₹10,000 crore in July. This represents a significant reversal from previous months and provides crucial support for market momentum. The Nifty Midcap 100 climbed 1.8%, the Smallcap 250 gained 1.1% and the Nifty 500 index rose 2% in July, indicating broad-based strength across market segments. Market analysts suggest that Indian markets are likely to stay buoyant as geopolitical worries recede and India's weight in the MSCI Emerging Markets index rises amid weakness in peers like Korea and Taiwan.
According to The Economic Times, technical analysts are optimistic about the market's near-term prospects. Chandan Taparia from Motilal Oswal Financial Services noted that the index has formed a higher base, with immediate support at 24,000, and could move toward 24,750-25,000 as geopolitical factors ease. Sriram Velayudhan from IIFL Capital Services added that the Nifty has been forming what appears to be an ascending base triangle over the past few weeks, and it has the potential to test 24,800 in the ensuing sessions if tensions don't intensify further. The Nifty Next 50 and Nifty 500 breaking out, and mid and small caps showing momentum, could outperform the benchmark index. With 60% historical probability of positive returns based on the last 11 years, markets are positioned for potential gains despite ongoing global uncertainties.
As reported by The Economic Times, certain sectors demonstrate favorable seasonality patterns in August. The FMCG index has ended August in positive territory in 13 out of the last 20 years, delivering an average return of 2.84%, with only one negative performance in 2023. The Auto sector has been one of the strongest performers, ending in the green in 12 out of the last 20 years, generating an average gain of 5.30%. Market analysts expect autos to see fresh buying interest if monsoon improves and on pre-festive channel filling. Select NBFCs are looking good while pharma, metals and realty can do well in the current environment. Velayudhan noted that large caps will likely play catch-up in August, and some of them could undergird the Nifty. The analysis suggests that with 60% historical probability of positive returns based on the last 11 years, markets are positioned for potential gains despite ongoing global uncertainties.
