Benchmark Indices: Q4 was a challenging period for broad markets. The NIFTY 50 fell by 14.54% , while the NIFTY 500 dropped by 14.01%. Small-cap and mid-cap segments also saw declines, with the Mid-Small 400 down 13.3% and the Smallcap 250 down 14.4%
Sector Performance: Metals, Pharma Energy, public sector and commodity-linked sectors were the only brighter spots. Gold led with a 12.46% gain , followed by CPSE at 8.41%. In contrast, high-growth sectors like IT (-23.29%), Realty (-25.83%), and Tourism (-24.25%) faced severe corrections.
Strategy Performance: Weekendinvesting strategies generally defensive postures during the downturn:
The Quarter of Defensive Resilience If Q3 was characterized by a “Santa Rally,” Q4 FY 2026 was a period that demanded strict adherence to risk management. The optimism seen at the end of December met a harsh reality in the new year as the NIFTY 50 retreated from its highs to close the quarter down 14.54% post the breakout of the US Iran war. The market grappled with a significant rotation out of high-beta sectors like IT and Realty, which saw corrections exceeding 20%.
Sectoral Performance: The Flight to Safety The “Great Rotation” we noted in Q3 continued, but with a decidedly defensive tilt. While growth-oriented sectors like IT and Tourism cooled significantly, Gold and CPSE emerged as the primary beneficiaries of the volatile environment, gaining 12.46% and 8.41% respectively. This shift highlights the importance of a diversified mandate that can find pockets of strength even when the broader indices are in the red.
Strategy Performance: Protecting Capital In a quarter where the broad NIFTY 500 fell over 14%, our strategies focused on capital preservation:
Mi Evergreen lived up to its name, posting a calmer -7.6% return by leveraging its balanced exposure to stabilizing assets.
Mi Allcap GOLD was our standout performer, falling 6.8% as it captured the surge in safe-haven assets.
While concentrated strategies like Mi 20 (-13.9%) and Mi 35 (-11.4%) faced headwinds, they continued to stay in line with the corresponding Mid-Small 400 index.
MiATH2 was the star performer with only a 2% loss in the same period.
Our Philosophy: Staying the Course Our mantra of BBC (Bhav Bhagwan Che) was tested this quarter. While the volatility was high, our non-discretionary systems ensured we didn’t “catch falling knives” in the hardest-hit sectors like Realty and IT. By following the price, our portfolios naturally gravitated toward the relative strength seen in Gold and PSE names.
This Quarter we also implemented the HYBRID momentum strategy where in deep crisis mode all our erstwhile rotational strategies will also go to cash as and when that situation occurs. More on this can be read in our blog here.
Looking Ahead: Closing the Fiscal Year As we close FY 2026, we remain in a state of “Optimistic Vigilance”. The market reset has been sharp, but it has also cleared much of the previous quarters’ excess. We are entering the new fiscal year with high conviction that our momentum-based, rule-bound approach remains the best vehicle to navigate these shifts.
Stay disciplined. Stick to the plan.
Team Weekendinvesting
