Sensex just clocked its worst Q2 returns in four years

livemint.com:

With just a 1.7% gain during the last three months, the benchmark BSE Sensex has just returned its worst September-ended quarter in four years. This was also true for the BSE500, BSE AllCap and the BSE LargeCap indices, even as the mid-cap and small-cap indices remained unscathed. The Sensex had surged 8.3% during the September quarter last year, and nearly 13% in 2021.

The last time it dropped lower during Q2 was in 2019, when the returns dipped into negative territory, declining 1.9%. The negative return for the September quarter is in sharp contrast with that of the June quarter, when investors enjoyed a substantial gain of 9.7%, a significant upturn from the 3% drop in the March quarter. Over the past four years, the Sensex has experienced significant periods of contraction and stabilization.

The worst quarterly decline, of 28.5%, was seen in the March quarter of 2020, as the onset of the covid-19 pandemic wrecked global stock markets. In the past four years the index has gained in 12 quarters and declined in four. Large-cap stocks also exhibited a similar pattern for the September quarter, achieving their lowest returns (2.5%) in four years for the corresponding period.

In contrast, mid- and small-cap indices showed comparatively stronger performance, with 12.4% and 15.2% gains, respectively. So far this year the BSE SmallCap index has outperformed both the BSE LargeCap and BSE MidCap indices, gaining 29.9% till Friday. In comparison, mid-cap stocks gained 27.8%, while large-caps have risen 6.5%.

The mid-cap index has seen a steady rise but has faced many fluctuations along the way. The auto, bank, consumer discretionary and basic-materials indices also had their worst Q2 showing in four years. In all, 11 of the 19