PMS Tracker: HEM Securities’ SME Stars Shine Amid Nifty’s 6% Decline, Rallying Up to 7.5% in September.

The Indian equity market faced significant headwinds in September, with benchmark indices Nifty and Sensex witnessing declines exceeding 6% each. This downward trend was influenced by various external factors, including escalating geopolitical tensions in the Middle East, surging oil prices, and bond yields reaching multi-decade highs. These pressures contributed to a historic eight-week losing streak for the Nifty—the longest run since 2001—revealing heightened investor anxiety and a notable sell-off across various sectors.

The performance of portfolio management services (PMS) reflected this market volatility, with some strategies experiencing losses upwards of 11%. However, the month also highlighted stark disparities within portfolio performances; small-cap and SME-focused strategies emerged as the notable winners, showcasing resilience amid broader market declines. The India Rising SME Stars scheme from Hem Securities Ltd topped performance charts with a gain of 7.23%, while several other small-cap strategies also performed relatively well despite the turbulent market environment.

Conversely, thematic strategies and mid- to large-cap portfolios lagged significantly. The IME Digital Disruption managed by IME Portfolio Managers LLP recorded the steepest decline at 10.16%. This underscores a clear bifurcation in the market, where selectively managed small-cap portfolios have outperformed traditional broad-based strategies. The results from September emphasize the critical importance of portfolio positioning and tactical execution in navigating a volatile market, suggesting that informed investors may want to consider refinancing their asset allocations towards sectors exhibiting positive alpha.

Source: The Economic Times

(Expert Note: This intelligence brief was structured and verified by the Wealthova editorial desk.)