Image Source : Dalal Street Investment Journal
1. Sentiment Turns Bullish Across Broader Market
Investor confidence in Indian equities is showing signs of revival, with a growing number of stocks inching closer to their 52week highs.
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Around 30 percent of listed stocks are now trading near their annual peaks
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This marks a reversal from earlier months when lows dominated the landscape
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The trend signals improving market breadth and wider participation beyond large caps
2. Nifty 500 Spread Points to Broader Gains
The rolling return spread between the Nifty 500 equalweight index and the traditional Nifty 500 index is rising from cyclical lows.
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Equalweight index performance suggests gains are not limited to a few heavyweights
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Indicates healthier distribution of returns across midcap and smallcap segments
3. Style Rotation Remains Subdued
Despite the bullish undertone, no single investment style is currently dominating.
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Return spreads between value vs quality, small vs large, and momentum vs lowvolatility remain narrow
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Analysts recommend a balanced, multifactor approach in this phase of consolidation
4. What It Means for Investors
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The shift toward highs reflects optimism ahead of Q1 earnings and macro stability
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Broader participation may offer opportunities in underowned sectors
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Caution advised as volatility could resurface with global cues and policy updates
Sources: LiveMint, PL Capital, Economic Times, HDFC Sky, Investing.com India, NSE India
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