Weekly Briefs, Windmill Capital Desk

Reading Time: 1 minutes

*Sector Weightage – Value & Momentum smallcase*

The above table displays the sectoral weightage in the Value & Momentum smallcase across the last 1 year (5 previous rebalances). Since this is a model smallcase, all of these sectors get self-selected into the smallcase. Let’s discuss the key trends to understand what’s been working in the markets.

Industrials – Check out the weightage of Industrials in the smallcase. From 26.7%, in March ‘23, it went up to 40% in June ‘23 and then back to the previous figure. The reason behind that was the sudden price strength that was to be seen in the sector, especially railways and infrastructure post the ambitious capex push from the government in the Union Budget. In fact, one of the industrial companies, Apar Industries, in the smallcase has become 3x bagger in the last one year.

Materials – Well this sector saw weightage go from 20% to 0% in this time period. Why so? Because under materials we held chemicals and mining & metals companies which have lost sheen in recent times. Unless, there is price strength or any fundamental/policy boost, sectors find it hard to sustain their weightage in the smallcase.

Consumer Discretionary – Quite the reverse has transpired with this sector. As you would know, there are various sub-sectors in the consumer discretionary space. For our smallcase, the majority of these weights were allocated to auto and auto ancillaries given the green shoots in the sector. Car sales have been very robust over the past six months on account better discounts and overall environment.

Shyam Agarwal

Making markets sound cool.

Loan Against Mutual Funds (LAMF) vs Personal Loans: Interest Rates, Finance & How to Take Them

Rebalancing, A Rational Move

Cancel reply

Dislaimer: This platform is intended for informational purposes only and is not intended to provide investment advice. The stock prices displayed are delayed and may not reflect the most current market conditions. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. You can also consider consulting a financial advisor before making any investment decisions. Smallcase Technologies Private Limited shall not be responsible for any losses that may occur as a result of using this platform.

The views expressed in this article are those of the author and do not necessarily reflect the views of Smallcase Technologies Private Limited (STPL) or any of its associates. The information provided in this article is for educational and informational purposes only. Investors are responsible for their investment decisions and are responsible to validate all the information used to make the investment decision. Investors should understand that his/her investment decision is based on personal investment needs and risk tolerance, and performance information available on here is one amongst many other things that should be considered while making an investment decision. Past performance does not guarantee future returns.

Investments in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The examples and/or scurities quoted (if any) are for illustration only and are not recommendatory.

The content and data available on the website, including but not limited to index value, return numbers and rationale are for information and illustration purposes only. Charts and performance numbers do not include the impact of transaction fee and other related costs. Past performance does not guarantee future returns and performances of the portfolios are subject to market risk. Data used for calculation of live returns and other information is provided by exchange approved third party vendors and has neither been audited nor validated by the Company. Detailed return calculation methodology is available here. Detailed volatility calculation methodology is available here.

The user agrees to assume complete and full responsibility for the outcomes of all of his/her investment decisions that he/she makes, including any direct, indirect, incidental, consequential, special, punitive or any other losses/damages if any that may be incurred by him/her. Smallcase Technologies shall not be responsible or liable for any direct, indirect, incidental, consequential, special, punitive or any other losses/damages arising out of the recipient's investments. For disclosures related to Smallcase Technologies Pvt Ltd, please visit this page .