
Mid & Smallcap Indices Surge; 20+ Stocks Gain 10-50%
After a three-week losing streak, the BSE mid and smallcap indices finally broke the pattern and ended the week on a high note. The Indian benchmark indices also joined the rally, gaining 1% this week. The BSE midcap index increased by 1%, while the BSE small-cap index rose by 0.4%. This surge in the mid and smallcap indices is a welcome relief for investors, who had been waiting for a turnaround in the market.
Among the major small-cap and mid-cap stocks, over 20 stocks saw significant gains, ranging from 9.85% to 54.96%. Most of these stocks clustered between 10-20% gains, indicating a broad-based rally in the market.
Some of the top gainers in the midcap space include:
- Adani Ports & Special Economic Zone Ltd., which gained 15.64% to close at ₹441.85 per share.
- Bajaj Finance Ltd., which rose 14.13% to close at ₹4,511.55 per share.
- Bajaj Finserv Ltd., which gained 13.33% to close at ₹7,431.10 per share.
- Hindalco Industries Ltd., which rose 12.45% to close at ₹241.60 per share.
- JSW Energy Ltd., which gained 11.85% to close at ₹73.80 per share.
In the smallcap space, some of the top gainers include:
- Aarti Industries Ltd., which gained 54.96% to close at ₹1,144.90 per share.
- Ashok Leyland Ltd., which rose 24.65% to close at ₹134.35 per share.
- Balrampur Chini Mills Ltd., which gained 23.31% to close at ₹233.95 per share.
- Filatex India Ltd., which rose 21.43% to close at ₹230.40 per share.
- Gokak Textiles Ltd., which gained 20.69% to close at ₹1,144.90 per share.
The rally in the mid and smallcap indices can be attributed to several factors. Firstly, the Indian economy has been showing signs of recovery, with the GDP growth rate improving to 7.7% in the second quarter of this fiscal. This has boosted investor confidence and led to a surge in stock prices.
Secondly, the valuation of mid and smallcap stocks has become attractive, making them an attractive option for investors. The P/E ratio of the BSE midcap index is currently at 23.95, which is lower than the P/E ratio of the BSE Sensex index, which is at 29.95. This means that mid and smallcap stocks are offering better value compared to largecap stocks.
Thirdly, the government’s efforts to boost the economy have also had a positive impact on the market. The government has been implementing various measures to increase the ease of doing business in the country, and this has led to an increase in investor confidence.
In conclusion, the surge in the mid and smallcap indices is a welcome relief for investors, who had been waiting for a turnaround in the market. With over 20 major small-cap and mid-cap stocks seeing gains ranging from 10-50%, this rally is a testament to the resilience of the Indian market.